Tax Insights – 2016 Tax Planning for Businesses
Article
1 minute read
August 17, 2016
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A variety of tax provisions recently enacted by Congress provide substantial benefits and savings opportunities to businesses in 2016 and beyond.
As part of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that became law in December 2015, Congress permanently established a $500,000 level for first-year expensing under Internal Revenue Code (IRC) Section 179. The $500,000 level is retroactive for 2015 and can be applied to qualified purchases that range up to $2 million in value. The deduction is phased out for purchases exceeding $2 million.