presented by Stan Royer, President

1. Health Care Stimulus 103 presented by Stan Royer, President Brian M. McCook February 18, 2010

2. State of the Tax Code • Many tax incentives set to expire at the end of 2010 • Marginal tax brackets • Estate tax exemptions • Deductions • Credits

3. Strategy for Tax Planning • Must plan for multiple tax years • Timing of income and deductions • Alternative Minimum Tax

4. Business Opportunities • Depreciation • Expensing of equipment over its useful life • Section 179 expensing • $250,000 direct expensing of capital assets • Bonus Depreciation

5. Business Opportunities • Employee benefit plans • Deduct amount of health insurance paid • Deduct amount of retirement plan match • Automobile usage • Able to deduct actual expenses (gas, oil, etc.) or utilize mileage rate

6. Business/Individual Tax Items • Retirement planning • SEP IRA (2010 limit = $49,000) • Easy to set up • Easy to deposit into • 401(k) (2010 limit = $16,500) • Easy to set up • Easy to deposit into

7. Individual Tax Items • Roth IRA Conversions • Income limits do not apply during 2010 • Capital Gains/Losses • Extra itemized deduction for Sales Tax • Vehicles with price under $49,000 • Pro rated for any purchase price above $49,000

8. Individual Tax • Tax credit for energy efficient improvements • 30% of eligible expenses, up to a max of $1,500 • Eligible items: windows, furnaces, water heaters, heat pumps, etc. • MAKE SURE IT MEETS THE INCREASED STANDARDS

9. Individual Tax • Charitable giving • Donations made to organizations helping with Haiti relief can deduct gifts made before March 1, 2010, on their 2009 tax returns • Must keep bank record or written communication from charity indicating the amount of charitable gift

10. Individual Tax • Gifts to family and friends • Up to $13,000 can be given tax-free to an unlimited number of people

11. Health Care Stimulus 103 Brian M. McCook AMD Health Care Services bmccook@amdcpa.com 314.655.5564 presented by Stan Royer, President