Lawmakers Vote To Make Three Tax Provisions for Businesses Permanent

Late last year lawmakers in Washington extended a bill that made three important tax provisions for businesses valid through December 31, 2014. That means those provisions were good for last year’s taxes, but expired when the clock struck midnight on January 1, 2015. The extension was welcome news last year for many businesses. Now there is more good news, as Congress recently voted to make those provisions permanent with a new bill: HR 636.

The three provisions in question are Section 179, Section 1374 and Section 1367(a)(2). With the Section 179 provision taxpayers would permanently be allowed to expense up to $500,000 in qualified assets, instead of just a mere $25,000 without the provision. That is a huge break for many businesses.

Provision Section 1374 has to do with corporations and how they pay taxes. S Corporations typically don’t pay corporate–level taxes. However, C corporations do pay those taxes. When a C corporation chooses to become an S corporation it and purges its assets within a 10-year period it must pay a tax on those gains. However, with Provision 1374 in place the waiting period is cut in half to just five years.

It used to be that when an S Corporation donated appreciated property to a charity it qualified for a fair market value deduction. The shareholders were then required to reduce their basis in the S Corporation’s stock. However, under the Section 1367 provision, those shareholders simply have to reduce their basis according to their share of the adjusted basis of the property that was donated.

If these provisions are passed and become law, they would greatly benefit small businesses. By knowing these provisions are permanent year-round, businesses would be able to better plan their purchases and sales throughout the year. Hopefully this bill is passed by the Senate and signed by the president.

Posted in
Dental Business Success Unveiled by Kevin Kremer

Dental Business Success Unveiled by Kevin Kremer

Dr. Kevin Kremer, Founder & CEO of Kremer Leadership Institute discusses unveiling success in the dental business on Alan Olsen‘s American Dreams Show. Dental Business Success Transcript: Alan Olsen Welcome to American Dreams. My guest today is Kevin Kremer, Kevin Kevin, welcome to today’s show.   Kevin Kremer Thanks, Alan. Thanks for having me.  …

Jason Ma on Shaping Next-Gen Leaders

Jason Ma on Shaping Next-Gen Leaders

Jason Ma Discusses Shaping Next-Gen Leaders on Alan Olsen‘s The American Dreams Show Transcript of American Dreams interview titled; “Mentoring The Next Generation“ Transcript: Alan Olsen Welcome to American Dreams. My guest today is Jason Ma. Jason, welcome to today’s program.   Jason Ma Thank you so much for inviting. It’s an honor and pleasure…

Austin Fowler on The Power of Quantum Computing and Ethical Investing

Austin Fowler on The Power of Quantum Computing and Ethical Investing

Austin Fowler Discusses The Power of Quantum Computing and Social Investing on Alan Olsen‘s American Dreams Show., episode  Transcript of American Dreams interview titled; “Empowering Financial Growth and Social Impact with Austin Fowler“. Alan Olsen Hi, this is Alan Olsen and welcome to American communities. My guest today is Austin Fowler. Austin. Welcome to today’s…

Successful Entrepreneurs Share 9 Essential Qualities

Successful Entrepreneurs Share Unique Qualities In the dynamic landscape of business, entrepreneurship stands as a beacon of innovation and change. Behind every successful venture lies an individual with a unique blend of qualities that propel them toward success. Whether it’s a tech startup disrupting an industry or a small local business thriving in a competitive…