As the year comes to an end, it is a good time to review new laws and regulations that may have an impact on how you manage your business and to consider tax planning moves that may help save or defer taxes. New laws/regulations:
Tax planning considerations:
- Earlier filing deadline for Forms W-2, W-3, and some Forms 1099-MISC
- New filing due dates for returns of partnerships and C corporations
- New rules on types of property qualifying for bonus depreciation
- New partnership audit and adjustment rules
- Note bonus compensation deductions for accrual method firms may be limited.
- Set up a self-employed retirement plan.
- Increase your basis in a partnership or S corporation if doing so will enable you to deduct a loss from it for this year.
- Businesses should consider making capital expenditures that qualify for the IRC Section 179 first year business expensing option.
- Consider making capital expenditures that qualify for 50% bonus first year depreciation if bought and placed in service this year.
- Make qualified research expenses before the end of 2016 that are eligible for the research credit.
- Review your capital expenditures to identify those that qualify to be expensed under the IRS safe harbor de minimis threshold of $2,500 (or $5,000 if you have an applicable financial statement).
Please visit our website for a summary of the above noted items. You should examine these as well as other tax planning options thoroughly before initiating action. We are happy to discuss these with you and tailor a tax plan that will work best for you.
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