In preparation for the April 15 tax deadline, Business News Daily consulted small business tax experts to find out what things business owners should pay attention to now as the 2016 tax season approaches. Some of these issues involve recent tax changes, while others are issues small businesses should watch for in the future.
Two important tax breaks for small business have been extended: Section 179 and bonus depreciation. Section 179 allows businesses to deduct the full price of any qualifying equipment or software purchased or leased during the year. The tax-extension bill makes permanent the $500,000 maximum deduction for new and used equipment that was purchased or leased in 2015. Bonus depreciation, which was extended through 2017, allows business owners to depreciate 50 percent of the cost of new equipment purchased in 2015. The two tax incentives can be used together.
“Now that small businesses know they can write off … eligible equipment, we may see a lot more spending by small businesses,” Priyanka Prakash, finance specialist at FitBiz Loans, told Business News Daily. “The nice thing is that Section 179 applies to almost any kind of equipment, from office furniture to software to vehicles.”
Other notable tax extenders include the research and development credit, work opportunity tax credit, energy production tax credits, and a deduction for local and state sales tax. Grafton “Cap” Willey, a managing director at CBIZ MHM, said the extensions — even the temporary ones — are an important step in helping small businesses plan ahead.
– Read more at: http://www.businessnewsdaily.com/7720-small-business-taxes.html