As a small business owner, compliance with business and tax laws are likely at the forefront of your to-do list each month. Most notably, compliance with state and federal tax laws is one of the simplest ways to avoid fines and penalties – as well as insulate the business from unnecessary auditing and records inspection.
As the current quarter nears a close, the following corporate law tax changes me be of assistance to your business as you prepare your filings. As always, if you have business law or tax-related questions, the knowledgeable attorneys of Willcox, Buyck & Williams, P.A. can help ensure seamless compliance with all applicable regulations.
#1: Federal PATH Act: The “Protecting Americans from Tax Hikes” Act of 2015 was signed into law in December 2016, perpetuating several temporary tax breaks for business into permanent status. The impact of the passage of the PATH Act will vary depending on the type of business involved, but many stand to benefit from some of the nuanced provisions of the Act – so plan accordingly. As well, the Act was enacted retroactive to the beginning of 2015, thereby maximizing the possible available savings.
#2: Property Deductions (Section 179): Businesses are now permitted to deduct up to $500,000 in new or used purchases of property (a steep increase from the former maximum deduction of $25,000). Only catch? The property must have a “class life” of at least 20 years to qualify for the deduction.
#3: Medical Excise Tax: For the 2016 and 2017 tax years, all excise taxes formerly imposed on the sale of medical equipment and devices will be alleviated, saving healthcare businesses 2.3 percent.
#4: Work opportunity tax: Under currently laws, the Work Opportunity Tax Credit will be extended, allowing businesses the opportunity to qualify for credits upon hiring veterans and those enduring long-term unemployment.
#5: Bonus Depreciation: Businesses may now (through 2017) write off 50 percent of the costs to acquire qualified new assets with a recovery period of 20 years or less. The recovery amount decreases to 40 percent in 2018 and 30 percent in 2019.
If you would like to speak to an experienced attorney about your corporate compliance issues, please contact Willcox, Buyck & Williams, P.A.