Tax Season Reminders

1. Recent law increased Section 179 deduction
   Did you purchase and begin using new or second-hand business equipment during 2014?

Thanks to a year-end tax law extension, you can deduct up to $500,000 of your costs on your 2014 federal income tax return. The $2,000,000 overall limit was also reinstated, meaning your deduction is reduced when your annual equipment purchases exceed that amount.

Bonus depreciation available for 2014
The Tax Increase Prevention Act of 2014 revived 50% bonus depreciation for 2014 federal income tax returns. Bonus depreciation is available in addition to Section 179 expensing, and gives you the option of writing off up to 50% of the cost of certain new business assets. Unlike Section 179, you can claim bonus depreciation no matter the amount of your annual equipment purchases, as well as when your business reports a loss.

Electronic refunds limited to three per account
The IRS announces that, as part of its efforts to curb fraud and identity theft, it will no longer directly deposit more than three electronic refunds to a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund.
The IRS also warns that direct deposit must be made only to accounts bearing the taxpayer's name.

Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

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