1.
ESTATE AND TRUST INCOME TAX RATES SECTION 179 EXPENSING
2012 Tax Guide
If taxable income is… your tax is… of amount over 2012 2013
$0—$2,400 15% $0
Expensing limit $139,000 $25,000
$2,400—$5,600 $360 + 25% $2,400
Phaseout threshold $560,000 $200,000
$5,600—$8,500 $1,160 + 28% $5,600
$8,500—$11,650 $1,972 + 33% $8,500
$11,650 and above $3,012 + 35% $11,650 DEPRECIATION LIMITS FOR PASSENGER VEHICLES
For passenger vehicles, trucks, and vans used more than 50% in
qualified business use, the maximum depreciation deduction,
including both the Section 179 expense deduction, as well as bonus
depreciation, is limited to $11,060 for cars and $11,260 for trucks
and vans.
GIFT AND ESTATE TAX EXEMPTIONS AND RATES
Year Exemption Top rate of excess DEPRECIATION LIMITS FOR HEAVY SUVs, TRUCKS, AND VANS
2011 $5,000,000 35% Certain vehicles, with a gross vehicle weight rating above 6,000
2012 $5,120,000 35% pounds, but no more than 14,000 pounds, qualify for Section 179
2013 $1,000,000 55% expensing up to $25,000 if the vehicle is placed in service prior to
December 31.
2012 annual gift tax exclusion: $13,000 per recipient ($26,000 if
spouses elect “split‐gift” treatment)
The spouse of someone who dies in 2011 or 2012 may be able to
use the deceased spouse’s unused exemption. BONUS DEPRECIATION*
2012 2013
50% 0%
CORPORATE INCOME TAX RATES*
*Qualified assets include new tangible property with a recovery period of 20 years or less, off‐
the‐shelf computer software, water utility property, and qualified leasehold‐improvement
If taxable income is… your tax is… of amount over
property.
$0 — $50,000 $0
15%
$50,000 — $75,000 $50,000
$7,500 + 25%
$75,000 — $100,000 $75,000
$13,750 + 34% MACRS DEPRECIATION RATES
$100,000 — $335,000 $100,000
$22,250 + 39%
(with half‐year convention)
$335,000 ‐ $10,000,000 $335,000
$113,900 + 34% Asset Class
$10,000,000 — $15,000,000
$3,400,000 + 35% $10,000,000 Year 3‐year 5‐year 7‐year
1 33.33% 20.00% 14.29%
$5,150,000 + 38% $15,000,000
$15,000,000 — $18,333,333 2 44.45% 32.00% 24.49%
$18,333,333 and above
$6,416,667 + 35% $18,333,333 3 14.81% 19.20% 17.49%
4 7.41% 11.52% 12.49%
*Personal service corporations are taxed at a flat 35% rate. 5 — 11.52% 8.93%
6 — 5.76% 8.92%
7 — — 8.93%
8 — — 4.46%
HEALTH SAVINGS ACCOUNTS
Limit Individual Family
Contribution $3,100 $6,250 Disclaimer
Catch‐up contribution* $1,000 $1,000 Many of the amounts used in this guide are adjusted annually for inflation
and/or tax law changes. As we go to press, this is the most current
Minimum high‐deductible
information available. We suggest you talk to a tax professional regarding
health plan (HDHP) deductible $1,200 $2,400 your own situation.
Maximum HDHP out‐of‐
Circular 230 Disclosure
pocket costs $6,050 $12,100
This analysis is not tax advice and is not intended or written to be used,
*Individuals age 55 and older may qualify to make these additional contributions
and cannot be used, for purposes of avoiding tax penalties that may be
imposed on any taxpayer. www.padgett‐cpa.com
800 879 4966
2012
AUSTIN SAN ANTONIO

2. 2012 INDIVIDUAL TAX RATE SCHEDULE CAPITAL GAINS TAX RATES STANDARD DEDUCTIONS
FILING Of amount
STATUS: Maximum Rate Filing status Deduction
If taxable income is: Your tax is: over: Single $5,950
Type of Gain 2012 2013
$0—$8,700 10% Short‐term gain (assets held 12 months or less)
$0 35% 39.6% Head of household $8,700
$870 + 15%
$8,700—$35,350 $8,700 Long‐term gain (generally, assets held more Married filing jointly or surviving spouse $11,900
than 12 months) 15%
20% Married filing separately $5,950
$35,350—$85,650 $4,868 + 25%
$35,350
Single
Long‐term gain on collectibles 28% 28%
$85,650—$178,650 $17,443 + 28% $85,650
$178,650—$388,350 $43,483 + 33% $178,650 Long‐term gain attributable to certain STANDARD MILEAGE RATES
depreciation recapture 25% 25%
$388,350 and above $112,684 + 35% $388,350 Use of vehicle Deduction per mile
Long‐term gain that would be taxed at 15% Business 55.5 cents
$0—$12,400 10% $0
or less based on the taxpayer’s ordinary‐ Medical or moving 23 cents
$12,400—$47,350 $1,240 + 15% $12,400 income rate 0% 10%
Charitable 14 cents
Head of $47,350—$122,300 $6,483 + 25% $47,350
Household
$122,300—$198,050 $25,220 + 28% $122,300 PERSONAL EXEMPTIONS
$198,050—$388,350 $46,430 + 33% $198,050 2012 ALTERNATIVE MINIMUM TAX
Exemption amount: $3,800*
$388,350 and above $109,229 + 35% $388,350 Single, head of household, married filing jointly, or surviving spouse * The exemption phaseout for higher‐income taxpayers does not apply to 2012.
$0—$17,400 10% If taxable income is…
$0 your tax is… of amount over
$0—$175,000 26% $0
Married $1,740 + 15%
$17,400—$70,700 $17,400 $175,000 and above $45,500 + 28% $175,000
Filing $70,700—$142,700 $9,735 + 25%
$70,700
INDIVIDUAL RETIREMENT ACCOUNTS
Jointly or Married filing separately
Surviving $142,700—$217,450 $27,735 + 28%
$142,700 Deductible IRAs
If taxable income is… your tax is… of amount over
Spouse Maximum contribution—age 49 and younger $5,000
$217,450—$388,350 $48,665 + 33%
$217,450 $0—$87,500 26% $0
Maximum contribution—age 50 and older $6,000
$388,350 and above $105,062 + 35% $388,350 $87,500 and above $22,750 + 28% $87,500
Active participants in employer pension and 401(k) plans are
$0—$8,700 10% $0
Exemptions* subject to phase‐out limits.
Filing status Exemption amount
$8,700—$35,350 $870 + 15% $8,700 Roth IRAs*
Married Single or head of household $33,750 Nondeductible contribution up to $5,000
Filing $35,350—$71,350 $4,868 + 25% $35,350 Married filing jointly $45,000 $6,000 for age 50 and older
Separately $71,350—$108,725 $13,868 + 28% $71,350 Married filing separately $22,500
2012 AGI phase‐outs:
$108,725—$194,175 $24,333 + 33% $108,725 Joint filers $173,000—$183,000
Exemption phaseouts based on AMT income*
$194,175 and above $52,531 + 35% $194,175 Filing status Income range of phaseout Individual filers $110,000—$125,999
Single or head of household $112,500—$247,500
*Qualified distributions are tax free.
* These rates generally apply to earned income, business income, interest, and dividends. But for Married filing jointly $150,000—$330,000
2012, long‐term capital gains rates apply to qualified dividends.
Married filing separately $75,000—$165,000
*An AMT patch might be passed that would increase the exemptions and expand the phaseout RETIREMENT BENEFIT LIMITS
ranges.
INDIVIDUAL ESTIMATED TAX PAYMENTS Benefit
Contributions to 401(k), 403(b), 457(b),
To avoid possible underpayment penalties, you are generally required to 457(c)(1), and SARSEP plans $17,000
pay through withholding or quarterly estimated tax payments the lesser of:
2012 FICA RATES Contributions to defined contribution plans $50,000
• 100% of prior year tax liability,* or; Contribution to SIMPLEs $11,500
The rate for the employee portion of Social Security tax is 4.2%.
• 90% of the current year tax liability
The maximum earned income to which it applies is $110,100. Catch‐up contributions to 401(k), 403(b), 457(b),
*For individuals whose adjusted gross income for the preceding year is more than $150,000, the The Medicare rate is 1.45% and applies to all earned income. 457(c)(1), and SARSEP plans $5,500
required percentage of the prior year tax liability is 110%.
Catch‐up contributions to SIMPLES $2,500
Self‐employed individuals pay both the employee and employer
Estimated tax payments for individuals and trusts for 2012 are due by: Compensation for benefit purposes for qualified
portions, but get a deduction for the employer portion.
April 17, 2012 September 17, 2012 plans and SEPs $250,000
June 15, 2012 January 15, 2013 Cash wages totaling $1,800 or more to household employees are also Highly compensated employee threshold $115,000
subject to FICA taxes.
Annual benefit for defined benefit plans $200,000