Archives for Business

2015 Strategic Tax Planning for Businesses

YEAR-END BUSINESS PLANNING As with prior years, business tax planning is unsure due to the expiration of many popular but temporary tax breaks that have been of an “extenders” package of legislation. Another factor leading to uncertainty is the far-reaching Affordable Care Act. Additional changes to the tax law in 2015 made by new regulations and other IRS guidance also need to be weighed when evaluating year-end strategies. Code Sec. 179 Expensing Code Sec. 179
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Latest Updates on the Tax Increase Prevention Act of 2014

On December 16, 2014, Congress passed what is known as an extenders package including more than 50 of the tax credits that expired at the end of 2013. President Obama has signed the Act on December 19, 2014 and it is effective for the 2014 tax year only. Some of the most prominent tax credits are: state and local sales tax deduction, higher education tuition deduction, and the exclusion for discharge of mortgage debt, business and
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Small Business Jobs Act 2010

Highlights of Small Business Jobs Act 2010 HR 5297 signed on 9/27/2010 1) Bonus depreciation extended to 12/31/2010.   Bonus depreciation is 50% depreciation on new equipment acquired. No taxable income or equipment total restrictions 2) Section 179 expensing up to $250,000 thru 12/31/2011.  Was scheduled to revert back to $125,000. 3) Auto depreciation for new passenger cars now up to $11,060 for 2010. 4) S corp built in gain period for conversion of C corp to S
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Excess Liquidity

What is Excess Liquidity?  It’s a term that banks or other financial institutions utilize to talk about too much money or capital chasing too few deals.  It’s an interesting phenomenon. The last time we had this , was in 2006 and 2007 before the economy deflated.  There was a lot of investment money in 1) Hedge funds 2) Private equity 3) Commercial banks buying business assets.  Loan restrictions were relaxed and loans were given to people
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IRS on the auditing warpath

See this article on IRS increasing audits of small to medium sized businesses by 30%.  We are seeing this in my practice and in talks with other practioners.  My opinion on this is that the IRS can get easier dollars by targeting small businesses rather than large ones with less resources, even though per dollar-wise, it still makes sense for the IRS to go after the Fortune 1000s.  Of course this is bad news for
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Buy or Lease a Car

I’ve been getting many questions on to buy or lease a car/truck/SUV. Last year, the question was clear, if you used your car for business, it was better to buy, you got an additional 11K in depreciation (2009).  For SUV or trucks over 6,000 lbs , if used 50 percent for business, you can take an additional $25,000 in depeciation + bonus depreciation (take another 50% off the cost basis for depreciation) in 2009.  SO BUY was
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