The information on what provisions are in effect for 2013 is as follows:

• Extended provisions applicable to 2013 only for:
  • Individuals
  • Business
• New Provisions
  Includes details on changes to tax rates, phase-out of itemized deductions and personal exemption, and the new tax rate for capital gains and dividend income.
• Extender Provisions made permanent
  Includes details on provisions that were set to expire at the end of 2011 or 2012 that were made permanent.
• Provisions Extended for 5 years (2013 – 2017)
  Includes details on the three provisions that now expire at the end of 2017.

Affordable Care Act Provisions that begin in 2013

• Itemized Medical Expense Deduction – Change to threshold percentage
  for taxpayers under age 65. Medical expenses are now only included in the calculation of itemized deductions when they exceed 10% of adjusted gross income.

• New Additional Medicare Tax for high income individuals
  Details on when this new tax goes into effect and for what type of income it is applicable.

• New Tax on Net Investment Income for high income individuals
  Details on when this new tax applies and what the definition of net investment income is for this new tax.

Schedule A – Medical Expense Threshold Percentage
Deductible when medical expenses exceed:

• Taxpayers under 65: 10% of AGI
• Taxpayers 65 or older: 7.5% of AGI

Exemption Amount: $3,900 per exemption

Standard Deduction:
Basic:

• Single/MFS: $6,100
• MFJ/Qualifying Widow(er): $12,200
• Head of Household: $8,700

Additional Amount for Aged and Blind:

• $1,150 for each
• $1,450 for each if individual is unmarried and a surviving spouse

Standard Mileage Rates

• Business purposes (up to four vehicles): 56.5 cents per mile
• Medical/Moving purposes: 24 cents per mile
• Charitable purposes: 14 cents per mile

Capital Gains/Dividends Tax Rate

• 0% for taxpayers in 10% or 15% tax brackets
• 15% for taxpayers in 25%, 28%, 33%, or 35% tax brackets
• 20% for taxpayers in 39.6% tax bracket

Bonus Depreciation

• 50% rate applies for 2013

Section 179 Expense

• Maximum Deduction: $500,000
• Maximum Cost before maximum deduction is reduced: $2,000,000
• Qualified Real Property Category
  • Includes leasehold improvements, restaurant property and retail improvement property
  • Limit for qualified real property is $250,000