Consider These Ideas for Your Business By the End of 2013
With the close of 2013, there are a few deductions for your business that might not be around after the ball drops and we finish celebrating the New Year. The areas of concern are related to equipment or fixed asset purchases and research & development expenses.
For equipment or fixed asset purchases, the Section 179 deduction is set to expire on December 31st. The section 179 deduction allows businesses to write-off dollar for dollar the cost of equipment, furniture, and computer equipment within certain limitations. The maximum amount of the section 179 deduction for 2013 is $500,000. This is for total purchases less than $2,000,000. If the section 179 deduction is not extended, the deduction will fall to $25,000 for 2014.
The research & development tax credit is set to expire on December 31st as well. This tax credit seems to always get extended, but there is no guarantee it continue to be available. The R& D credit is believed to be for businesses that are developing very high-tech and innovative products, services and processes. It really is not solely for that! Just developing new ways of doing things or improving existing processes may qualify.
The key word here is documentation. Everything you do must be documented as well as all of the costs associated with the development of this new process etc.
Tim Valentino has over 28 years of public accounting experience to bear on his clients' challenges. He is among our firm's best instructors and works often and successfully with clients' accounting staffs. Tim is a Certified Valuation Analyst (CVA) and is certified to perform business evaluations. Tim is a graduate of Miami University. His other areas of expertise include instructing and consulting with clients' on-staff accounting teams, businesses in the manufacturing, service and health care industries, and accounting and tax issues that impact small business.