Each year, business owners can count on changes in tax law and other rules. For 2017, small businesses are getting a bigger deduction for equipment purchases, and those that aren’t required to provide health insurance will have an option to help staffers pay for coverage. Many companies have new filing deadlines for their tax returns, and owners who use their cars for business will get a slightly smaller deduction.
A look at some of the changes owners will see in this new year:
Small businesses buying many types of equipment get a bigger tax break in 2017. The Section 179 deduction will be $510,000, up $10,000 from 2016, an adjustment to account for the effects of inflation.
The deduction, intended for small businesses, lets them deduct up-front rather than depreciate the costs of equipment like computers, vehicles, manufacturing machines and furniture, as well as some types of real property. But air conditioning and heating equipment, and land and improvements to land like paved parking areas are not eligible for the deduction.
If a business spends more than $2,030,000 on equipment that qualifies for the Section 179 deduction, the tax break is reduced by the amount they spend that exceeds $2,030,000. However, companies can depreciate equipment that doesn’t qualify for the Section179 break, and get a deduction that way.
You can learn more about Section 179 deductions and depreciation in IRS Publication 946, How to Depreciate Property. You can find it on the IRS website, www.irs.gov .
You can read the other half of this great article on USA-Today here: http://usat.ly/2idCP2f