Two weeks ago, we discussed that the Iowa legislature this year has indicated that they do not plan to couple with any federal tax law changes for 2016. That still appears to be the direction Iowa is going to take.
For 2016 for federal purposes, businesses can immediately deduct up to $500,000 of the tax basis of certain business property or equipment placed into service that year, rather than depreciating that equipment over a period of years. Once qualifying purchases reach a threshold of $2,010,000, the amount of the deduction is reduced, dollar-for-dollar for each dollar above the threshold.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein