The 2012 American Taxpayer Relief Act also extended many popular business provisions. Estate and gift tax rules are impacted as well.
Business Tax Extenders
Increased expensing amounts under Sec. 179 have been extended for tax years 2012 and 2013. The 2012 deduction limit jumps from $139,000 to $500,000. The 2013 deduction limit will also be $500,000. Fifty percent first-year bonus depreciation was also extended through 2013. In addition, the research expense credit was extended for 2012 and 2013 and modified slightly. The credit has changed to allow partial inclusion of qualified research expenses and gross receipts of an acquired trade or business or major portion of one. The following is a list of other popular business provisions that were extended through 2013:
Estate and Gift Taxes
The estate and gift tax exclusion of $5 million (indexed for inflation) does not change. However, the top rate increases to 40% effective January 1, 2013. Also, the estate tax "portability" election whereby the surviving spouse's exemption amount is increased by the deceased spouse's unused exemption amount was made permanent.