2015 Tax Extender Bill Passed
December 22, 2015
Our friends in Congress finally passed the tax extender bill for 2015. Many tax breaks expired at the end of 2014 after they were extended late in December 2014. It is a rerun of last year. It took 11-1/2 months for a decision, but they finally decided to extend the tax breaks for 2015. The good news is some of the key deductions were made permanent and some of the other ones were extended for a few years.
The main item in the tax extender bill that affects our business clients is the depreciation deduction. The 2014 rules for the 50% Bonus Depreciation on new equipment is available again for 2015 and will be available through 2019. The election (Section 179) to fully expense equipment purchased up to $500,000 (providing a business does not purchase more than $2 million of equipment) has been permanently extended. Qualified leasehold improvements can be depreciated over 15 years instead the normal 39 years has been made permanent.
Many businesses are profitable in 2015 and still looking for ways to reduce the tax bill created by their profit. In order to take advantage of the depreciation deductions listed above, the new equipment must be purchased and placed in operation by December 31, 2015. Some businesses have already purchased a significant amount of new assets and were limited on the depreciation, but with the tax extender bill passing, many may still be able to significantly reduce their tax bill for 2015
As always, please call or email our office with any questions.