The National Society of Accountants is suggesting some year-end tax tips to help businesses save money on taxes for this year and beyond, courtesy of Wolters Kluwer CCH.
Expensing and Bonus Depreciation
As a business owner, you may already know the benefits of Tax Code Section 179 expensing and bonus depreciation, which allows you to deduct the cost of certain types of property on your income tax return as an expense. Uncertainty over the ultimate fate of enhanced Code Sec. 179 expensing and bonus depreciation affects 2014 year-end planning, particularly as business owners contemplate purchases of equipment and supplies.
As a business owner, you may already know the benefits of Tax Code Section 179 expensing and bonus depreciation, which allows you to deduct the cost of certain types of property on your income tax return as an expense. Uncertainty over the ultimate fate of enhanced Code Sec. 179 expensing and bonus depreciation affects 2014 year-end planning, particularly as business owners contemplate purchases of equipment and supplies.
For tax years beginning in 2012 and 2013, the Sec. 179 dollar limitation was $500,000, and the investment limitation was $2 million (both indexed for inflation). These and other enhanced amounts expired after 2013; Congress will likely extend them, though exactly when in the last weeks of this midterm election year is uncertain.....
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Source: Michael Cohn (www.accountingtoday.com)
