Issue link: http://www.insightdigital.biz/i/100667
w w w. i n s i g h t o n b u s i n e s s . c o m CPA + You = Strong Financial Future ��� Carried interest, the treatment of fees earned by private equity firms and hedge fund managers as long-term capital gains rather than ordinary income, is apt to see some revision this year, in part because Mitt Romney���s presidential campaign and the attention to Bain Capital made the arcane technical issue a political topic ��� Romney earned 31 percent of his income from carried interest, which was the reason his effective tax rate was about 14 percent. Roher says the impact in Wisconsin won���t so much be on private equity, which has a relatively small presence in the state, but on property developers who often take their fee on exit and pay capital gains. ���A number of folks in Wisconsin, especially in the real estate industry, may need to think about how they structure the economics of their transactions,��� he says. ���They have been assuming they would get capital gains on the sale of the property but it may be a little hard to plan because we don���t know what the legislative solution will look like.��� Mary Greiner, a CPA at Schenck���s Appleton office, says one of the biggest changes for business will be the end of bonus depreciation. In 2011, businesses could deduct 100 percent of new assets. That went down to 50 percent in 2012 and in 2013 is set to return to standard depreciation. Expensing, which had a $139,000 limit in 2012 and a $560,000 investment ceiling, will go to a $25,000 limit and a $200,000 investment ceiling in 2013, she says. Even tax attorneys don���t have crystal balls, but Roher was willing to offer a guess that while the bonus depreciation has been popular with both political parties, and it has been used as a tool to boost the economy in recession, its extension isn���t at all assured. ���Now any dollar expenditure has to be offset by revenue, and revenue is hard to come by,��� he says. FindaCPA www.wicpa.org/ Belong to something more! Build the Good Life 235 N. Executive Drive, Suite 200 | Brookfield, WI 53005 | 262-785-0445 InSightAdJan2012F.indd 1 12/8/2011 11:03:29 AM At Baylake Wealth Services, we are committed to helping our clients establish and grow their wealth throughout life. Our financial planning helps you enjoy peace of mind, knowing you have the advice ��� or second opinion ��� that will enable you to build your portfolio and make the most of your money. Plus, we���re here for you long after that first meeting; you can count on our availability whenever you need us. ��� Broad range of asset management choices ��� Credentialed, local experts ��� Ongoing, consistent communication Located at Baylake Bank Not FDIC Insured Not Bank Guaranteed May Lose Value 1-800-267-3610 I www.baylake.com Trust Services | Financial Planning | Riskwww.baylake.com 1-800-267-3610 ��� Management J a n u a r y 2 013 ��� Insight | 31