Posted by: RightMethod on 12/07/2015

Tax Law Changes

Tax laws are always changing and the best way to stay on top of the changes is to consult with your accountant. However, as a prelude to your conversation with your accounting pro here are some changes to look out for as you discuss your 2015 filing.

1. Section 179 – The IRS tax code's Section 179 permits businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. In simple terms, if you buy or lease qualifying equipment or software you can deduct the entire purchase price from your gross income. The big change for 2015 is that only $25,000 can be deducted as a business expense. That's down from the prior limit of a whopping $500,000.

2. R&D Tax Credit – The IRS used to allow small businesses to deduct any research and development expenses relating to their research and product or service development. For 2015, this credit no longer applies.

3. S Corporation Changes – In 2015 the ability for S Corporations to deduct charitable contributions of food donations and appreciated property will no longer apply. However, on the bright side the built in gains recognition period for S Corp.'s will be extended to 10 years.

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