Profitability Points

Welcome to Profitability Points, the blog space of Person Huff CPA group! We’ve decided to take up the challenge of making the boring topics of accounting and small business interesting enough that you read our posts and learn something you can apply in your daily operations. Our goal is to help you make (and keep!) more money by providing timely information about federal and state taxes, managing cash flow and streamlining operations. Learn more about our Five Point Profitability Checkup

Year-end Tax Planning: Section 179 Deductions

by dhuff on November 17, 2015

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the 2015 tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Section 179 is a small business tax incentive that allows you to a deduction of up to $25,000 for the purchases of new and used equipment as well as off-the-shelf software. All businesses that purchase, finance, and/or lease less than $200,000 in new or used business equipment during tax year 2015 should qualify for the Section 179 Deduction. The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction.

Purchases that generally qualify for Section 179 Deduction

Please keep in mind that to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1 and December 31 of the tax year you are claiming.

  • Equipment (machines, etc) purchased for business use
  • Tangible personal property used in business
  • Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
  • Computers
  • Computer “Off-the-Shelf” Software
  • Office Furniture
  • Office Equipment
  • Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
  • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).

We can help you take advantage of Section 179 to lower your overall tax bill. Contact us today!

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2015 Tax Amnesty to Run November 16 – December 15

November 5, 2015

The 2015 Tax Amnesty Program is the third and final effort permitted by the Louisiana Tax Delinquency Amnesty Act of 2013. After the conclusion of 2015 amnesty, there will be no new amnesty program offered by the Department of Revenue before Jan. 1, 2025. APPLICATIONS FOR LOUISIANA TAX AMNESTY 2015 WILL BEGIN AT 12:00 AM […]

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The Importance of Timing in Business Tax Planning

November 2, 2015

Maximize your profitability with good tax planning so you won’t be burdened with taxes that could be reduced or even eliminated. Start with looking for ways to push income 2016 while pulling expenses into 2015. If you use the cash-method of accounting, delay as many invoices as possible until after January 1, 2016 so that […]

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IRS Issues Inflation-Adjusted Tax Amounts for 2016 Tax Year

October 29, 2015

Standard deductions and the personal exemption will both increase slightly for the 2016 tax year according to the Revenue Procedure 2015 document released by the IRS October 21. Revised tax tables are shown below. Beginning in 2016, the allowable itemized deductions are $311,300 in the case of a joint return or a surviving spouse, $285,350 […]

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Louisiana Fiscal Reform: A Framework for the Future Executive Summary

October 23, 2015

Louisiana convened its 2015 legislative session with seemingly insurmountable problems: a $1.6 billion budget shortfall, difficult-to-navigate funding dedications, and a governor who pledged he wouldn’t increase taxes. If that combination seems intractable, it was—the session closed with a patchwork of short-term, temporary fixes to plug the budget hole with promises that legislators would be back […]

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Home Mortgage Interest Deduction Doubled For Unmarried Co-owners

October 19, 2015

The Ninth Circuit Court of Appeals, reversing a Tax Court decision, concluded that the tax law’s limits on the amount of debt eligible for the home mortgage interest deduction ($1 million of mortgage “acquisition” debt and $100,000 of home equity debt) are applied on a per-individual basis, and not a per-residence basis as the IRS […]

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Recent Changes to “Per Diem” Business Travel Reimbursement Rates

October 15, 2015

There were a number of important tax developments in the third quarter of 2015 including changes to “per diem” travel expense reimbursements. An employer may pay a per-diem amount to an employee on business-travel status instead of reimbursing actual substantiated expenses for away-from-home lodging, meal and incidental expenses. If the rate paid doesn’t exceed IRS-approved […]

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The Economic Impact of Bobby Jindal’s Tax Plan

October 13, 2015

Presidential candidate Governor Bobby Jindal of Louisiana has released his tax reform proposal which, among other things, seeks to reduce individual income tax rates, eliminate the corporate income tax, and reduce tax code complexity. The Wall Street Journal reported that a focus of the plan is to ensure that everyone contributes to income tax revenue, […]

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2015 International Tax Competitiveness Index

October 8, 2015

Taxes are a crucial component of a country’s international competitiveness. In today’s globalized economy, the structure of a country’s tax code is an important factor for businesses when they decide where to invest, how much to invest, and which types of operations to locate in which countries. No longer can a country levy high taxes […]

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