Tax Season Reminders
- Recent law increased Section 179 deduction
Did you purchase and begin using new or second-hand business equipment during 2014?
It’s finally official—President Barack Obama signed H.R. 5771, The Tax Increase Prevention Act Friday, December 19, 2014.
Businesses will enjoy the one-year extension of the research and development credit and bonus depreciation
Business Tax Provisions:
Small Businesses: Plan for Lower Section 179 Expense
Top-line: In 2014, the annual expense limit for Section 179 is now $25,000, down from $500,000 in 2013. You will need to plan accordingly.
Section 179 of the tax code allows businesses to immediately expense qualified capital purchases versus depreciating (recovering) their cost over time. Qualified purchases can be new or used equipment and certain software placed in service during the year. This benefit can be maximized as long as total qualified asset purchases by your business do not exceed $200,000 (formerly $2 million) during your 2014 tax year.