Last Friday, December, 19, 2014, the President signed into law the “Tax Increase Prevention Act of 2014.” This Act contains last minute, retroactive changes back to January 1, 2014 and, believe it or not, with most of these extended tax provisions expiring again on December 31, 2014.
Likely the most significant impact is that the Act retroactively changed additional first-year depreciation allowed for 2014 from $25,000 to $500,000. Many of our clients have already spent the $25,000 allowed for 2014 and we were working with them to extend their purchases of equipment over into 2015.
For our clients: If possible, and based on your 2014 circumstances and plans for 2015, as long as you take delivery of new assets eligible for additional first-year depreciation (referred to as Section 179 depreciation) prior to 12/31/14, we can get the deduction for 2014. Note “delivery and put into use” is key so accelerate the process if it is appropriate for your circumstances to do so.
Please give us a call if you would like to discuss this change as it applies to your situation. Thank you.