Update: 2014 Tax Planning for Businesses
Posted on 12.16.14
Year-end tax planning is especially challenging this year because there were multiple tax provisions which expired at the end of 2013, which may possibly be retroactively reinstated and extended through 2014 through the Tax Increase Prevention Act of 2014. As of December 15th, 2014, however, this bill has only been passed by the House of Representatives. Congress may not decide the fate of this bill, and the tax breaks it would extend, until the very end of this year (and, possibly, not until next year).
These breaks for businesses include:
- 50% bonus first year depreciation for most new machinery, equipment and software
- $500,000 annual expensing limitation (Section 179 deduction – currently limited to only $25,000 for 2014)
- Research tax credit
- 15-year write off for qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property