As 2018 comes to a close, it’s time to talk about year-end planning information for businesses. Eligible businesses should consider making purchases that qualify for section 179 deduction (the liberalized business property expensing option). For tax years beginning in 2018, the expensing limit is $1,000,000, and the investment ceiling limit is $2,500,000. Note that the expensing break is limited to the amount of taxable income (as specially computed) from all of the taxpayer’
We are continuing our discussion from last week on year-end tax planning challenges.
Businesses that have benefited from the generous $500,000 Code Sec. 179 expensing limit for tangible personal property (and certain software) for the past few years may be in for a shock this year.
Starting with the 2014 tax year, unless Congress makes a retroactive change, the maximum annual Code Sec. 179 expensing limit drops precipitously to $25,000. The dollar limit on the phaseout o
Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this year (and, possibly, not until next year). These breaks include: For Individuals -The option to deduct state and local sales and use taxes instead of state and local income taxes
Today and in the next two weeks we will take a look at year-end tax planning as it relates to purchases of equipment. An expanding and strengthening economy may mean that December, 31, 2013 will be the end of the line for some stimulus-type tax breaks. Unless Congress acts, 50% bonus depreciation generally won't be available for property placed in service after this year. Also slated for disappearance is the 15-year write-off and special expensing allowance for qualified leas