In the News: Saving Money is Top New Year’s Resolution
Hello and Happy New Year to my Insightful readers! I hope the holiday season was full of joy and left you rested, relaxed and most importantly, ready to tackle the year ahead.
The AICPA will be launching a number of exciting initiatives this year and I’m looking forward to getting the news out and continuing to share interesting articles about the profession that you may not have caught. As always, if you happen to see something that makes you stop and say ‘this is important news CPAs should really be aware of it’ – please send it my way and I’ll consider it for inclusion.
Every January many Americans resolve to make beneficial changes to their life. They may decide to start exercising, to spend more quality time with family and friends or to, finally once and for all, get organized. A recent survey conducted by the AICPA and Ad Council has found that, for young adults, saving money in 2012 is at the top of their priority list. The survey was released to coincide with the launch of a new PSA on behalf of the national Feed the Pig financial literacy campaign, which helps 25- to 34-year-olds take control of their finances and make saving a priority.
In addition to resolutions and a seemingly endless stream of college football bowl games, this new year also brings new tax rules from the IRS. Reuters reported that the IRS issued new rules clarifying the difference between a business expense which is a repair and tax-deductible and one that is an improvement but not deductible right away.
An ordinary business repair of an asset is generally tax deductible. An improvement is usually classified as a capital expenditure and not immediately deductible. For years, businesses have relied on case law to determine the difference between a business expense and a capital expenditure. Courts have kept their rulings case-specific in the debate on repairs versus capital improvements. "For a long period of time, this has been an area of disagreement between taxpayers and the IRS," Michelle Koroghlanian, CPA, of the AICPA’s Tax Team explained to Reuters.
Since no New Year’s post would be complete without retrospective lists of the year that passed, I will call your attention to the Accounting Today’s top accounting and tax stories of 2011, CFO.com’s best of accounting: 2011 and CPA Trendlines top 20 topics of 2011.
Here's to a great 2012!