So here is a follow up to my post a few weeks a go about Section 179 and other tax write offs for small businesses. I want to preface this article with this..75-85% of employees are employed by small businesses. So what happens on the level of small business is huge. It’s great that American Express promotes small business Saturday, but when our government is more concerned on voting on who owns land, what you can do with that land and other issues far less important(if you don’t believe me just go to the government site and review what Congress is voting on) than what happens to help small business grow. I question are our priorities off base and wrong. You can take that anyway you like. Is it partisan, does it benefit huge corporations that have the money to lobby our leaders, is it a lack of over site, or just pure partisan politics. To us small business owners,at the end of the day what matters is you have continued to cripple our growth after the 2008 financial collapse… We have not turned around(unlike the large banks you bailed out) and we still need tax breaks to expand, grow our research and development and find ways to employee new people. As a small business owner I am extremely upset that this Congress let Section 179 and other important tax breaks expire or drop to original old limits,in 2014. This is a very important year for small business trying to come out of the slump that we didn’t create. So I’m asking all business owners to contact their Congress members, Senators and the President and demand that they implement these tax breaks back to the higher limits and make them permanent, so businesses don’t have to spend the whole year trying to figure out what tax write offs they will have and whether they should or shouldn’t try to expand. Trust me the CPA’s will really love this. As waiting till the last month of the year hurts everyone.
I tried to call my Congress office but couldn’t get any feedback on what may happen. I then tried researching online. Below are some positive articles I found on sites like CFO and ASA, which seems to give us hope. The one thing they are asking is to call your elected officials and demand asap that these tax breaks be raised back to levels of last year.
The following articles are from other sites online. I have tried to ensure that I acknowledge the site. If I miss a group or site it was not my intention. Let’s hope for immediate votes to extend these tax credits. Pamela Hewett Professional Funding Corporation, professionalfundingcompany.com.
“Section 179 Expensing and Bonus Depreciation – Agriculture requires large investments in machinery, equipment and other depreciable assets and because of this, farmers are significantly impacted by tax code provisions such as Section 179 small business expensing and bonus depreciation. Section 179 allows them to write off capital expenditures in the year that purchases are made rather than depreciate them over time. The ability to immediately expense capital purchases also provides an incentive for farmers and ranchers to invest in their businesses and offers the benefit of reducing the record keeping burden associated with the depreciation. Section 179 small business expensing provides agricultural producers with a way to maximize business purchases in years when they have positive cash flow. Under the expired law the maximum amount that a small business can immediately expense when purchasing business assets, instead of depreciating them over time, is $25,000 adjusted for inflation. ASA supports restoring the maximum amount of expensing under Section 179 to $500,000 as it was previously set in 2013. ASA also supports reinstatement of the expired 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment
Encourage Your Senators and Representatives to Support a Tax Extenders Package in the Lame Duck
Posted November 14, 2014
ASA urges all members to contact their U.S. Senators and Representatives and express support for enactment of a tax extenders package during the lame duck session that includes extension of the $1 per gallon biodiesel tax credit, restoring the maximum amount of expensing under Section 179 to $500,000 as it was previously set in 2013, and reinstatement of the expired 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment.
During the current lame duck session of Congress one of the few items expected to be considered is a tax extenders package. The tax extenders package is a collection of provisions that are not permanent law and expired as of Dec. 31, 2013. Earlier this year, the Senate Finance Committee approved a bill that would extend the expiring provisions for two years, while the House has proposed making some of the provisions permanent and/or limiting the extension of the temporary credits to one year. Renewing all of the breaks that expired Dec. 31, 2013, for one year would cost about $54 billion in total, according to the Congressional Budget Office. The Senate’s two-year package of 51 breaks would cost $84.1 billion, spread over 10 years.” American Soybean Association
Another great read from CFO.com
Three of the most mentioned expirations of business tax provisions are the “Research and Experimentation” tax credit, bonus depreciation and the so-called Section 179 Election enabling small businesses to deduct certain property expenses from their taxes