Tick-Tock: Business Tax Provisions Set To Expire for 2014

2013 may be the last occasion for businesses to take advantage of several special benefits.   Congress has renewed these popular provisions in the past. As of the date of this post, however, the consensus is Congress may let the following benefits to lapse:

  Bonus Depreciation – This allows a business to record 50% depreciation on qualifying property purchased during the year, regardless of which month the asset is purchased.  

Qualifying property – must be depreciable under Modified Accelerated Cost Recovery System (MACRS) and have a recovery period of 20 years or less.


   Enhanced Section 179 Expensing – This allows to deduct the entire cost of equipment

rather than depreciating over a number of years. The maximum deduction is scheduled to

drop to $25,000 from $500,000, subject to other limitations.


  Work Opportunity Tax Credit – Employers must hire members of certain targeted groups and those individuals must start work by January 1, 2014.  The credit is generally 40% of the qualified worker’s first-year wages up to $6,000.


  Research Tax Credit – The research credit may be claimed for increases in business related qualified research expenditures and for increases in payments to universities and other qualified organizations for basic research.


   15-Year Recovery For Leasehold/Retail Improvements, Restaurant Property – This allows qualified leasehold improvements, qualified retail improvements and qualified restaurant property to be written off over 15 years. To qualify, the property must be placed in service before January 1, 2014. Otherwise, the recovery period will increase to as much as 39 years.


With the end of 2013 right around the corner, allow Kasperek & Co. to assist you in stratergizing before it  is too late!