Business Plans

Small Business Tax Deductions in 2017

by Matthew Person on January 5, 2017


In 2017, many small businesses are eligible for a bigger deduction on equipment purchases, and those that aren’t required to provide health insurance will have an option to help staffers pay for coverage. Additionally, many companies have new filing deadlines for their tax returns, and owners who use their cars for business will get a slightly smaller deduction.

Here are some of the other changes owners will see in this new year:


  • Small businesses buying many types of equipment get a bigger tax break in 2017. The Section 179 deduction will be $510,000, up $10,000 from 2016, an adjustment to account for the effects of inflation.
  • The deduction, intended for small businesses, lets them deduct up-front rather than depreciate the costs of equipment like computers, vehicles, manufacturing machines and furniture, as well as some types of real property. However air conditioning and heating equipment, and land and improvements to land like paved parking areas are not eligible for the deduction.
  • If a business spends more than $2,030,000 on equipment that qualifies for the Section 179 deduction, the tax break is reduced by the amount they spend that exceeds $2,030,000. However, companies can depreciate equipment that doesn’t qualify for the Section 179 break, and get a deduction that way.

Stand Alone HRAs

Small business owners who aren’t required to offer health insurance to staffers but want to help them pay for coverage can now do so through what are known as Health Reimbursement Arrangements.

  • HRAs have been legal under the health care law only if employers offered insurance that met the law’s requirements and provided the HRAs as one alternative that employees could choose. But owners who were exempt under the law because they had fewer than 50 staffers couldn’t simply give workers stipends or other non-taxed pay to defray the cost of individual policies.
  • The 21st Century Cures Act that President Barack Obama signed into law last month allows small businesses exempt from the law to create what are called stand-alone HRAs to reimburse employees for health-related expenses, including insurance.
  • There is a limit of $4,950 for an individual employee or $10,000 if an employer wants to pay for a staffer’s family’s expenses. The law provides for annual increases tied to the inflation rate.

Contact Person Huff CPA Group

  • This field is for validation purposes and should be left unchanged.

What the Affordable Care Act Means for You

December 11, 2016

The Affordable Care Act (ACA): has ushered in the most sweeping regulatory changes to the U.S. health care system since Medicare and Medicaid were passed about 50 years ago. It raises a full range of health care issues, and will continue to do so as provisions take effect through 2020. However, along with potentially increasing […]

Read the full article →

Changes to Louisiana Corporate Franchise Law Tax

May 11, 2016

The changes to the Louisiana corporate franchise tax adopted during the Session appear to be potentially more far reaching than the changes to the state sales and use tax. For tax periods beginning on or after January 1, 2017, Act 12 (signed by the Governor and effective March 10, 2016) expands the Louisiana corporate franchise […]

Read the full article →

Pomp and Circumstance

June 24, 2015

June is Graduation Season, and odds are good that you’ve spent some time seated on a cheap folding chair or arena bleacher watching someone proceed down an aisle in an expensive cap and gown. Commencement speakers will thank the faculty, staff, and parents who made it all possible. But how many of them thank the […]

Read the full article →

The Original Tax Shelter

May 18, 2015

 New York City is the indisputable hub of American capitalism. Its glittering streets are home to the worlds of finance, advertising, fashion, publishing, and even organized crime. The island of Manhattan is home to some of the richest people on the planet, and they own some of its priciest real estate in the world. You […]

Read the full article →

Guaranteed Loser

April 24, 2015

 You’ve bought a lottery ticket or two in your time, right? The Powerball jackpot hits a kajillion dollars, and you realize you really can’t win if you don’t play. So you buy a ticket or two just to nurse that fantasy of champagne wishes and caviar dreams. Forget the reality that most lottery players never […]

Read the full article →

New Health Laws Yield New Taxs Forms- Part 1

January 23, 2015

As if tax forms were not already complicated, now you have to throw in the new healthcare laws.  On your 2014 tax form you will have to indicate if you had healthcare for the full year.  But that’s not all there is to do! You will be receiving forms in the mail in January and […]

Read the full article →

Managing Your Charitable Donations

August 2, 2014

Matthew Person, CPA David Huff, CPA, PFS, MS Todd Wilson, CPA Person Huff CPA Group 3200 Lake Villa Drive Metairie, LA 70002 (504) 780-8299 Fax 1-800-799-1292 Berkshire Giveaway Someday, the financial wizards who run things on Wall Street will realize there’s “paper to be stacked” opening an Investor Hall of Fame. (Hey, the  Rock and […]

Read the full article →

Shoebox full of receipts or an actual tax plan?

July 21, 2014

Matthew Person, CPA David Huff, CPA, PFS, MS Todd Wilson, CPA Person Huff CPA Group 3200 Lake Villa Drive Metairie, LA 70002 (504) 780-8299 Fax 1-800-799-1292 Cleveland Rocks! Cleveland, Ohio has historically been one of America’s most populous and productive cities, peaking as the fifth-largest back in 1920.  Today, “C-Town” is a shadow of […]

Read the full article →