A New Year often brings changes to tax laws, and 2016 is no different. If you prepare your own taxes – either individual or business – it’s important to keep up with these changes. Having an awareness of new tax laws for the coming year can help you be better prepared to maximize your return or minimize your payment.
This article from USA Today highlights what it believes to be the 10 biggest income tax changes for 2016. Give it a quick read to see what might apply to you. If you have questions, we can help! With years of experience and a sound understanding of tax law, we can guide you through the changes and how they may impact you or your business.
The biggest change in our opinion is the Section 179 depreciation. In December, Congress made the provisions permanent, and the amount of deductible expense is now fixed as well. As explained on Section179.org, this change can be significant as it “allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means is you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.”
If you would like to learn more about how Section 179 can help your small business in 2016, schedule an appointment with us today. We know tax law can be complicated, so let us remove some of that burden from you to make your tax management easier. We would also be happy to discuss with you the Bonus Depreciation that was set at 50% for 2016 to see if it could benefit your business as well. Contact us at (913) 888-9100. We look forward to working with you!
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.