USB Payment Processing, a Credit Card Processor in Towson, Maryland, Gives Tips on Small-Business Tax Incentives

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USB Payment Processing works with thousands of small businesses in Baltimore, Towson, and all of Maryland on merchant services and credit card processing. USB Payment Processing President Reibman offers money saving tax tips for businesses.

Tax planning can be difficult for a small business, all the more so when a lot of the work is left until the last minute — not by the business owners or their accountants, but by Congress, says USB Payment Processing’s Marc Reibman. USB Payment Processing works with thousands of small businesses in Baltimore, Towson, and all of Maryland on merchant services and credit card processing. Mr. Reibman offers money saving tax tips for businesses.

“Businesses will have to make sense of a number of tax changes approved on New Year’s Day, along with some tax increases and other requirements approved earlier, notably in connection with health care programs,” says Reibman. “The legislation, which averted the so-called fiscal cliff, set higher rates on several taxes that affect small-business owners, while giving new life to credits and deductions that they find particularly helpful.”

Mr. Reibman says the recent tax bill that renewed dozens of income-tax provisions for individuals and businesses through a series of provisions that the legislating class calls “extenders.” Nearly all of the most important provisions won a reprieve through at least this year, he says. As a merchant services provider in Maryland Mr. Reibman shows where businesses can reduce their payments to the Tax Man.

Here’s where things stand for many of the small-business tax incentives that were on the table:

•Section 179 expensing: This popular provision allows small companies to fully expense many investments in just one year, instead of over five years or more. The amount of investment eligible for immediate expensing grew to $500,000 in 2010 and 2011, but was to fall to $139,000 in 2012 and $25,000 in 2013. The new law extends the $500,000 limit through 2013, and pushes the $25,000 cap to 2014. Section 179 is available only to companies with total capital expenditures for the year under a certain threshold — $2 million through 2013 and $200,000 starting in 2014.

•Bonus depreciation: Since 2008, companies have been able to take advantage of a special depreciation allowance that allows them to write off 50 percent (and sometimes more) of certain kinds of investment in the first year. The provision was set to expire at the end of 2012, but has been extended through the end of this year, or, in some cases, through 2014.

•Work opportunity tax credits: These are tax credits for employers who hire military veterans or people belonging to certain disadvantaged groups (for example, people receiving government assistance or living in distressed areas). Tax credits for hiring the disadvantaged expired in 2011 and those for veterans expired at the end of 2012; both have been extended through 2013.

•Fifteen-year depreciation for qualified improvements to leasehold, retail or restaurant property: Under this provision, which expired in 2011, a renter, retailer, or restaurateur can write off improvements in 15 years, rather than over 39 years (which may be longer than the business would even exist). It has been extended through 2013.

For more information about the tax provisions call your business lawyer, accountant or visit the IRS website or the USB website at

About USB Payment Processing
Whatever you do, wherever you work, USB Payment Processing has a wide range of innovative products and credit card services to help your business prosper. We offer business solutions to help you save money, save time, increase profits, attract new customers, increase loyalty, and simplify your business operations.

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Karen McGagh
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