Extension means businesses can take bonus depreciation on their 2015 returns – but should they?

Bonus depreciation allows businesses to recover the costs of depreciable property more quickly by claiming additional first-year depreciation for qualified assets. The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) extended 50% bonus depreciation through 2017.

The break had expired December 31, 2014, for most assets. So the PATH Act may give you a tax-saving opportunity for 2015 you wouldn’t otherwise have had. Many businesses will benefit from claiming this break on their 2015 returns. But you might save more tax in the long run if you forgo it.

What assets are eligible
For 2015, new tangible property with a recovery period of 20 years or less (such as office furniture and equipment) qualifies for bonus depreciation. So does off-the-shelf computer software, water utility property and qualified leasehold-improvement property.

Read more: Extension means businesses can take bonus depreciation on their 2015 returns – but should they?

President Obama has signed the Protecting Americans from Tax Hikes Act of 2015.

Several tax breaks have been made permanent such as the Research Tax Credit, Section 179 Expensing of $500,000, Charitable Distributions from IRA for individuals age 70 ½ or over, Child Tax Credit, American Opportunity Tax Credit, and the State & Local Sales Tax Deduction.

The Act renews some provisions through only 2016 such as the Qualified Tuition & Fees deduction, and Mortgage Debt Exclusi...

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IRS Announced 2016 Standard Mileage Rates for Business, Medical and Moving

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

- 54 cents per mile for business miles driven, down from 57.5 cents for 2015

- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015

- 14 cents per mile driven in service of charitable organizations

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