$500,000 Depreciation Deduction Legislation



Many taxpayers have questions about the likelihood that the provisions for the Section 179 depreciation deduction, and the the bonus first year deduction will be enacted for the 2014 tax year.   The legislative history on that matter is as follows:


  1. The House of Representatives approved H.R. 4457 in June of 2014.   That bill extended permanently the Section 179 expensing limit of $500,000. 
  2.  The Senate Finance Committee approved their tax extender bill (S.2260) which included provisions for the 500,000 Section 179 expensing limit, but Majority Leader Harry Reid would not allow the bill to reach the Senate Floor until after the November elections.

In summary, the Senate needs to consider the bill (S.2260) and if it is passed, a conference committee will be required to reconcile the differences in the House Bill (H.R. 4457) and the Senate Bill(S.2260).  The final bill with the reconciled differences will then be presented to the President for his signature. 

The House version is making many of the Extender issues permanent changes rather than having to reconsider them every few years, while the Senate version is not making them permanent.  The Senate version wants permanent tax reform to address the issues, and the House version wants their H.R. 2260 to deal with the issues in spite of possible tax reform.

As always, it makes a difference if we contact our elected representatives and senators to urge them to deal with these legislative issues sooner than later.   Let your voice be heard if you have reasons to want the legislation dealt with before the end of the year.

It is likely the “Republican wave” we witnessed in the elections of yesterday will make some difference in the votes of the current elected Senators and Representatives, but our emails and phone calls will encourage the vote to be brought to the Senate floor.

Popular posts from this blog

Independent Contractor Exemption Certificate (ICEC) – Frequently Asked Questions

Image
Montana Workers’ Compensation Laws for Independent Contractors from the Department of Labor & Industry What are Montana’s workers’ compensation laws for independent contractors? The law requires independent contractors to obtain either an independent contractor exemption certificate or self-elected coverage under a Montana workers’ compensation insurance policy. Refer to MCA, 39-71-417 . What is the purpose of an independent contractor exemption certificate? It allows an independent contractor to waive all their rights and benefits that would otherwise be provided by a workers’ compensation insurance policy. If an independent contractor were to suffer a work-related injury or occupational disease while performing the occupations specified on the certificate, they would not be eligible for workers’ compensation benefits. The certificate concludes the person’s status is conclusively presumed to be that of an independent contractor. Refer to MCA, 39-71-417(7) . What is the purpos
Read more

2019 Extended Tax Return Filing Deadline

IRS reminds taxpayers who filed an extension that the Oct. 15 due date approaches File and pay electronically, request direct deposit for refunds WASHINGTON – The Internal Revenue Service today reminds taxpayers who filed an extension that the Oct. 15 due date to file 2019 tax returns is approaching. Taxpayers should complete their tax returns and file on or before the Oct. 15 deadline. Convenient electronic filing options , including IRS Free File , are still available. Taxpayers and tax professionals should continue to use electronic options to support social distancing and speed the processing of tax returns, refunds and payments. Although Oct. 15 is the last day for most people to file, some taxpayers may have more time. They include: Members of the military and others serving in a combat zone . They typically have 180 days after they leave the combat zone to file returns and pay any taxes due. Taxpayers in federally declared disaster areas who already had
Read more

~ Christmas Wreath Silent Auction ~

Image
Bidding begins today and we encourage you to drop by our office or comment on our Facebook post to take this beautiful handmade wreath "home for the holidays"! All proceeds benefit the Broadus Senior Center and remember, Gardner & Billing CPAs will match the winning bid up to $50! Bidding will end after the stroll on Friday, so keep an eye on this one!
Read more