Tax Changes: Cell Phones no Longer Property and Limited Penalty for Disclosing Transactions

New classifications for business property and limitations of reporting penalties can simplify and encourage record keeping.

Cell phones no longer listed property. This means that cell phones can be deducted or depreciated like other business property, without onerous record keeping requirements. ( This information provided by: © 2010 Thomson Reuters/RIA. All rights reserved.)

Limitation on penalty for failure to disclose certain reportable transactions. The Small Business Jobs Act generally limits the penalty to 75% of the decrease in tax resulting from the transaction, retroactively to penalties assessed after Dec. 31, 2006. Minimum and maximum penalties apply. ( This information provided by: © 2010 Thomson Reuters/RIA. All rights reserved.)

If you have any questions on what you can disclose as reportable transactions or how to depreciate business property, contact your CPA.

© 2010 Thomson Reuters/RIA. All rights reserved