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by Dennis Roddy
Senior VP Business Services
Business planning in the current changing environment continues to be a challenge. Below are some planning tips regarding recent legislation.
What the Health Care Reform Bill Means to You
The recent health care reform legislation contains the most significant health care changes in decades. Basically, the legislation expands health insurance coverage by requiring “minimal insurance coverage” for individuals and their dependents beginning in 2014, by obtaining coverage through their employers or by purchasing coverage through newly created market places called “exchanges”. Some highlights include:
- Coverage of adult children up to the age of 26. Children can either be unmarried or married and student status is no longer required.
- Lifetime or annual benefit limits are now prohibited and cannot be imposed by group health plans or health insurance issuers offering group or individual health insurance.
- The reimbursement of non-prescription medicines under Health Flexible Spending Account and Health Savings Account has been eliminated. Over-the-counter drugs
such as Advil, Prilosec, Claritin, Sudafed, etc., cannot be reimbursed through your FSA or HSA unless you have a prescription from your physician. - Starting with 2010 taxes, small businesses (with fewer than 25 full-time equivalent employees) paying at least 50 percent of the health care premiums for their employees
qualify for a tax credit up to 35 percent of their premiums. The credit increases to 50 percent after 2014 if insurance is purchased through an exchange. The credit phases out based on the number of employees and average wages. Seasonal worker hours and wages are not counted in determining the number of full-time equivalent employees unless the worker works for the employer more than 120 days during the taxable year.
Energy Incentives
The Residential Energy Property Credit is for homeowners who make qualified improvements to their homes, such as adding insulation, energy efficient exterior windows, or energy-efficient heating and air conditioning systems. The credit equals 30% of the cost of the qualifying improvements, with a maximum credit of $1,500 for improvements placed in service in 2009 and 2010 combined.
Depreciation Changes
Section 179 Expensing Limit has been retained at $250,000 for 2010. The 50% bonus depreciation provision was NOT extended.
Business Planning can be complicated. We at Frontier Farm Credit specialize in working with family business to help develop plans and strategies that assist you in reaching success. Contact a local office to work with a Business Services Specialist to develop an Individualized approach to Business Planning.
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