Elliot Kravitz, ATP(R)

Article Highlights:   Sec 179 Expensing  Tax Planning Tool  Placed-in-Service Requirement  Section 179 is a provision of tax law that allows owners of small businesses to expense rather than depreciate equipment purchases made during the year. It is also a popular tax-planning tool allowing business owners to reduce their income for the year by making last-minute year-end purchases. For 2017 up $510,000 ($255,000 for married taxpayers filing separate) of qualifying expenses can be written off. Qualifying property includes machinery, tools, computer equipment, certain leasehold improvements, etc.  However, there is an often-overlooked requirement of Sec 179: and that is not only must the purchase be made before year-end, the purchased item must be placed-in-service placed in service before year-end in order to expense it in the year purchased.  Generally, for Sec. 179 expensing purposes, property is first placed in service when it is placed in a condition or state of readiness an

As the end of the year is getting close, this is a reminder that Sunday, December 31, is the last day that you can make a tax-deductible purchase, pay a tax-deductible expense, make a tax-deductible charitable contribution, or pay tax-credit-qualifying tuition or expenses for 2017.  That date is only 10 days away. Although many businesses, charitable organizations and government offices will be closed for a long New Year’s holiday weekend, you still have time before then to make charitable contributions and pay deductible taxes. If you have a child in college, you can also check to see if you have paid at least $4,000 in tuition and qualifying expenses for that student during 2017. If not, you are permitted to prepay for the first 3 months of the next year’s tuition and count that payment toward your 2017 tuition credit. However, before you do that, please call this office to make sure that this strategy is beneficial for you based upon the tuition amount and your income level.  If you

On Friday, December 15, 2017, the House and Senate conferees signed off on a consolidated tax bill resolving the two versions of the "Tax Cuts and Jobs Act of 2017”. Votes on this final bill are expected in the House and Senate this week. We have outlined the differences between current law and the conference report. TAX CUTS AND JOBS ACT OF 2017 This table compares the predominate changes made by the “Tax Cuts and Jobs Act of 2017” to the tax law as it was during 2017 for individuals and small businesses.   2017   TAX CUTS & JOBS ACT (2018) Exemptions    $4,050 Suspended through 2025 (effectively repealed) Standard Deductions Single: $6,350 Head of household: $9,350 Married filing joint: $12,700 Add’l Elderly & Blind      Joint & Surviving Spouse: $1,250         Others: $1,550 Single: $12,000 Head of household: $18,000 Married filing joint: $ 24,000 Add’l Elderly & Blind      Joint & Surviving Spouse: $1,300