Where Have All the Tax Breaks Gone?

Tax Breaks_Bryant & AssociatesAt Bryant & Associates, P.C., our firm of accounting specialists knows that as time passes, so do tax breaks. Of those breaks that you may have come to rely on, dozens are scheduled to come to an end on December 31, unless Congress chooses to extend them. Since no one knows with any certainty which, if any, tax breaks will still apply next year, business owners would be wise to examine their options and take advantage of expiring tax breaks while they still can.

To that end, here’s a list of expiring tax breaks compiled by Bryant & Associates, P.C. in Lincoln to help get you started.

1. Faster write-offs for facility improvement

When you invest capital to improve your workspace, the general rule says that expense can only be depreciated over 39 years. However, if the property you’re improving is a leasehold, retail establishment, or restaurant, you’ll be able to take advantage of many rules that are set to expire at the end of 2013:

  • Qualified improvements can benefit from $250,000 first-year expensing;
  • 50 percent additional depreciation for qualified improvements;
  • A repayment period of 15 years for any costs not deducted with extra depreciation or first-year expensing.

2. Faster write-offs for purchasing necessary equipment

You’ve come to the point where you need to buy more equipment in order to grow your business. Whether you’re providing your staff with new tablets or laptops, expanding with new machinery, or upgrading the office operating system, you can deduct your costs this year in the following ways:

  • If your company turns a profit, you can take up to a $500,000 deduction on the cost of eligible equipment. This goes for new and pre-owned equipment. This one is important to take advantage of now because next year’s limit is set at $25,000.
  • If you’re new and eligible equipment adds to or creates a financial loss in your business, you can still deduct 50 percent of the cost.

3. Eligible worker hire tax credits

If you need to hire more employees and have a solid idea of the costs involved (including health care obligations), you should consider hiring from certain targeted groups in order to receive a credit that can offset your overall tax:

  • If you hire certain workers classified as disadvantaged, including some veterans, you may be eligible to receive a work opportunity credit. To qualify, make sure to file IRS Form 8850 in a timely manner with your state’s workforce agency—this form certifies your new hires and makes you eligible for the credit.
  • With the empowerment employment credit, you’ll receive a tax break for hiring certain workers if your business is located in an urban or rural empowerment zone as designated by the federal government.
  • There’s a tax credit available for hiring certain enrolled members and spouses of members of Native American tribes who perform services within designated reservations.

Contact Bryant & Associates, P.C. at (402) 423-0404 Today!

Here at Bryant & Associates, P.C. in Lincoln, our firm of accounting specialists offers a variety of accounting, payroll, and tax services tailored to meet the needs of small businesses. With our Small Business Service Package, we’ve designed an advanced system of support for your day-to-day operations, giving you up to the minute information available 24 hours a day through our secure, online portal. If you have any questions or would like to set up an appointment to see how we can assist you, contact Bryant & Associates, P.C. today at (402) 423-0404!

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