Tax planning for 2015 can be a bit challenging right now, due to Congress not yet approving tax extenders for the current year.
The tax extenders are package of more than 50 various business tax breaks that can be important tax planning tools for businesses looking to save money.
The good news is that Congress has approved these tax extenders for many years running, and the Senate Finance Committee in July passed a bill extending $95 billion worth of the extenders through 2016.
But if recent history repeats itself, it may not be until December until the extenders are approved by the full Congress.
If approved, some of the most useful tax extenders include:
- 50% bonus depreciation for most NEW machinery, equipment, furniture & fixtures and software.
- Section 179 depreciation of new or used machinery, equipment, and furniture & fixtures of up to $500,000 of additions. This was the amount approved in 2014.
- 15-year recovery period for qualified leasehold improvement property and retail & restaurant improvements that are qualified leasehold improvement property qualify for bonus depreciation.
We’ve worked with many local business owners on how to use best use various tax extenders to their advantage. So assuming they’re passed, call us for industry-specific advice.
We'll be offering many more year end tax tips in the coming days and weeks. Check back here regularly for more tips - or call us for custom advice for your business or personal tax returns.