Deadline Looms for Some Tax Benefits Under the Small Business Jobs Act
Real estate and construction companies need to take note that some key provisions of the Small Business Jobs Act of 2010 (the Act) will expire by the end of the month. The Act expanded two income tax expensing provisions as an incentive to encourage businesses to purchase certain types of property. In order to take full advantage of these provisions for 2010 calendar tax years, qualified businesses will need to act quickly, placing property in service as soon as December 31, 2010. Bonus Depreciation Retroactive to January 1, 2010, the Act extended the 50-percent first-year bonus depreciation that previously expired at the end of 2009, giving. Read More.
CB&H’s RECon News – Fall 2009 Issue Now Available
The Fall 2009 issue of CB&H’s RECon News mailed this week. Do you subscribe to this free quarterly newsletter? If not, don’t miss another issue — click here to sign up today . Articles in the current issue include the following: Distressed Real Estate Assets Offer Challenges and Opportunities Economic Conditions Require More Frequent Fraud Risk Assessments IRS Issues Guidance for Making the Election to Defer Cancellation of Indebtedness Income Repair or Replace? Tax Planning Should Guide Equipment Decisions Where Are You Doing Business? Click here to download a pdf version of the most recent issue.
Tax Planning Strategies & Year-End Considerations
As the end of the year approaches, now is the time to evaluate your business and your personal tax strategies. By taking the time to prepare now, using this checklist, you will be able to develop a clearer picture of what your tax picture will look like while there’s still time to maximize current-year savings. Retirement Planning Look to maximize tax-deductible retirement plan contributions . The following table provides the maximum amounts that can be deferred under several popular retirement plan options during 2009.
Companies Starting to See Cash Flow Boost from Accelerated Depreciation
According to new study published in CFO magazine , some companies are realizing a significant cash flow increase thanks to the tax benefits associated with accelerated depreciation , which was originally available under the Economic Stimulus Act of 2008 and extended earlier this year. Zhen Deng, author of the study, calls the bonus depreciation deduction a government-sponsored “freebie” designed to help businesses struggling with liquidity problems survive a credit crunch. “Considering the time value of money,” says Deng, “deferring cash payments - even when there is not a liquidity crunch - is always a good thing.” The study highlighted 10 companies that quantified the impact of the bonus. Read More.
Recovery Act Extends Section 179 Expensing and Bonus Depreciation
In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers may elect to write off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. As part of the Economic Stimulus Act of 2008, Congress temporarily increased the amount that small businesses could write off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000. The American Recovery and Reinvestment Act of 2009 (“the Recovery Act”), signed by President Obama on February 17, 2009, extends these. Read More.
Repair or Replace? Tax Planning Should Guide Equipment Decisions
Construction equipment can be subject to significant wear and tear over time as contractors shift from site to site. Of course, the work itself often leads to further deterioration, and contractors are frequently faced with the decision to repair or replace equipment as a result. But since these decisions involve capital assets, contractors should carefully evaluate all available options in light of their company’s overall year-end tax planning strategy. Considering Repair Repairs are a normal part of owning and maintaining equipment. Since repair costs will increase as an asset ages, it is usually better to budget these costs on an. Read More.