Schaffner, Knight, Minnaugh & Company, P.C.

Consider the Consequences of Expired and New Business Provisions

Jun 18, 2015 | Posted in News and Events

Every year we are faced with last minute action from Congress on “extender” legislation. We are again faced with this for 2015. We are monitoring this closely and will inform you immediately when Congress takes action on the “extender’ legislation. Some of the items which may affect your business include:

Depreciation

Small businesses lost valuable tax planning options when increased expensing under Section 179 and first-year “bonus” depreciation for new business property expired at the end of 2014. There’s no clear indication that either will be extended for 2015, but we can suggest alternative solutions to help maintain cash flow and minimize your tax outlay.

Tangible Property Regulations.

Businesses often wrestle with understanding what items should be deducted versus what should be expensed. That task became more complicated this year when the IRS finalized new tangible property rules that affect every business that has tangible property (buildings, equipment, furniture, vehicles, etc…). We can continue to help you address these new requirements to ensure the best tax-saving option.

Some provisions may be applied retroactively to 2012 so it is possible to change prior year returns or do a partial dispositions to get a better result. A partial disposition lets you break up a single asset, such as a building, into separate components for tax purposes and possibly result in tax savings (for example, someone may still need to capitalize building costs over several years but deduct part of the roof depreciation earlier). Please contact us as soon as possible to discuss amending your return – there is a limited window for making this happen!

Schaffner, Knight, Minnaugh & Company, P.C. is here to help you with World Class Service. Call us today at 814-454-1997