There are many signs that the economy is strengthening and expanding. What could this mean for businesses?
Some people are expecting the Federal Reserve to begin to back off quantitative easing during the upcoming months. From a tax standpoint, economic improvement may mean the end of the line for several stimulus-type tax breaks that are scheduled to expire Dec. 31, 2013.
If you own or operate a business, a number of favored depreciation tax breaks may not be available next year, including:
In addition, the Code Section 179 expensing limit – $500,000 in 2013 – is slated for a drastic reduction next year.
Although the above benefits may be extended beyond 2013, there is no guarantee. If your business is planning to purchase machinery and equipment or invest in eligible real estate assets in the next year, you should consider accelerating your buying plans if it makes sound business sense. You may be able to lock in the accelerated deductions by buying qualifying assets this year and placing them in service by year-end.
Check with your tax adviser to be sure your planned purchase qualifies for an enhanced write-off.
©2013 CPAmerica International