{"id":16306,"date":"2015-02-13T11:23:40","date_gmt":"2015-02-13T16:23:40","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/02\/bussiness-report-impact-of-tax-increase-prevention-act.html"},"modified":"2015-02-13T11:23:40","modified_gmt":"2015-02-13T16:23:40","slug":"bussiness-report-impact-of-tax-increase-prevention-act","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/02\/bussiness-report-impact-of-tax-increase-prevention-act\/","title":{"rendered":"Bussiness Report: Impact Of Tax Increase Prevention Act"},"content":{"rendered":"
\n
\n\"debra\n<\/div>\n
Debra L. Smith, tax manager with Marvin and Company, PC\n<\/div>\n<\/div>\n

BY DEBRA L. SMITH, CPA<\/p>\n

On Jan. 1, 2014, more than 50 temporary tax
\nbreaks for business and individuals expired.<\/p>\n

On Dec.19, 2014, President Obama signed
\nthe Tax Increase Prevention Act that extended
\ndozens of these expired tax breaks retroactively
\nfor all of 2014. The act included extensions for
\nall types of tax payers including business, individuals
\nand multiemployer tax plans, but this
\nsummary will only address the more common
\nitems that will affect businesses and is not a
\ncomplete list of all extended items.<\/p>\n

A complete copy of the Act can be found at
\nwww.congress.gov.
\nThe Tax Increase Prevention Act extended
\nthe following items which means, if applicable,
\nthey can be utilized when preparing your 2014
\nbusiness income tax returns this year:<\/p>\n

\u00e2\u20ac\u00a2 As of Jan. 1, 2014, the limit on the amount
\nof qualifying property that could be deducted in
\nthe year of purchase as section 179 depreciation
\nhad decreased to $25,000. The Act increased
\nthis limit to $500,000 for purchases made in
\n2014.<\/p>\n

\u00e2\u20ac\u00a2 Bonus depreciation, the ability to expense
\n50 percent of the cost of an assets as depreciation
\nin the year of purchase, was reinstated (the
\nasset must be a new asset – it can’t be used).<\/p>\n

\u00e2\u20ac\u00a2 Accelerated depreciation for qualified
\nleasehold improvements, restaurant and retail
\nimprovements was extended whereby a business
\nowner can elect a shorter depreciable
\nlife of 15 years (rather than 39 that might be
\nrequired) for these types of assets.<\/p>\n

\u00e2\u20ac\u00a2 A shortened recognition period of 5 years
\n(rather than 10 years) can be used related to built-in gains that arise as a result of converting
\na C corporation to an S corporation.<\/p>\n

\u00e2\u20ac\u00a2 Tax credits for increasing research activities
\nhave been extended.<\/p>\n

\u00e2\u20ac\u00a2 The Work Opportunity Tax Credit (WOTC)
\nhas been extended for employing veterans or
\nother members of targeted groups including
\nex-felons, SSI (Supplemental Security Income)
\nrecipients, SNAP (Food Stamp) recipients,
\nand TANF (Temporary Assistance for Needy
\nFamilies) recipients, among others.<\/p>\n

\u00e2\u20ac\u00a2 The Biodiesel and Renewable Diesel Fuels
\nMixtures credits have been extended allowing
\na portion of excise tax paid to be refunded
\nas a credit based on the number of gallons of
\nbiodiesel used.<\/p>\n

\u00e2\u20ac\u00a2 Tax credits for building energy-efficient
\ncommercial buildings (commonly known as
\n179D) and energy-efficient new homes has
\nbeen extended.<\/p>\n

\u00e2\u20ac\u00a2 The credit for differential wage payments
\npaid to members of the uniformed services.<\/p>\n

\u00e2\u20ac\u00a2 Race horses were determined to be property
\nto be depreciated over three years.<\/p>\n

These extenders are valid for the 2014 year.
\nAs such, unless another extension is approved by Congress this year, many of the tax breaks
\nnoted above, and others for individuals, have
\nexpired as of Jan. 1, 2015.<\/p>\n

New repair regulations must also be considered
\nfor fixed assets for 2014. There are many
\nmoving parts to these regulations, but doing
\nnothing, especially if you have real property,
\nshould not be considered an option. There are
\nelections that may need to be made as well as
\nchange of accounting methods that should be
\nconsidered in order to remain in compliance
\nwith the new laws.<\/p>\n

The IRS has been quoted as stating “there are
\nnew laws in the regulation, so if the taxpayer
\ndoes nothing there is no way they can be in
\ncompliance with the new regulation”.<\/p>\n

There are also options that are available only
\nfor 2014. Declining to take advantage of some
\nof them now could have a negative impact on
\nyou or your business if you try to implement
\nthem after 2014.<\/p>\n

If you have questions about these, or other
\ntax law provisions or changes, you should contact
\na tax professional.<\/p>\n

Smith is a tax manager with Marvin and
\nCompany, PC.<\/em><\/p>\n

Photo Courtesy Marvin and Company PC<\/p>\n","protected":false},"excerpt":{"rendered":"

Debra L. Smith, tax manager with Marvin and Company, PC BY DEBRA L. SMITH, CPA On Jan. 1, 2014, more than 50 temporary tax breaks for business and individuals expired. On Dec.19, 2014, President Obama signed the Tax Increase…<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[67,133],"yoast_head":"\r\nBussiness Report: Impact Of Tax Increase Prevention Act - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/02\/bussiness-report-impact-of-tax-increase-prevention-act\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Bussiness Report: Impact Of Tax Increase Prevention Act - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"Debra L. Smith, tax manager with Marvin and Company, PC BY DEBRA L. SMITH, CPA On Jan. 1, 2014, more than 50 temporary tax breaks for business and individuals expired. 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