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2016: the changes in business taxes

posted January 21, 2016

In a very informative article on Accounting today, Robert Trinz highlights the major tax changes for businesses in 2016.

Here are the bullet points. You must register in Accounting Today to access the full article but if you’re in the accounting business (or own a business …) it’s well worth it to do so.

  • Enhancements for Sec. 179 expensing
  • De minimis expensing safe harbor for taxpayers with no AFS (applicable financial statement) raised to $2,500
  • Relaxed placed in service rule for claiming bonus depreciation on certain plants
  • Research credit of eligible small business may offset AMT as well as regular tax
  • Research credit of qualified small business may offset payroll tax
  • Liberalized rules for food inventory enhanced deduction
  • More employers eligible for differential wage payment credit
  • Work Opportunity Tax Credit expanded
  • Live theatrical productions qualify for expensing
  • Moratorium on medical device excise tax
  • Related party loss rules tightened
  • Alternative tax rate for corporate timber gains

Under the first item, it’s worthwhile to note that qualified leasehold improvement property is no longer eligible for bonus depreciation. Rather, “qualified improvement property” is eligible for bonus depreciation (for property placed in service after Dec. 31, 2015). Don’t miss this and other tips in Trinz’s article.

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