Buying a Business Vehicle May Reduce your 2014 Tax Bill
If you're looking to reduce your 2014 tax bill, you may want to consider purchasing a business vehicle before year end. Business-related purchases of new or used vehicles may be eligible for Section 179 expensing, which allows you to expense, rather than depreciate over a period of years, some or all of the vehicle's cost.
The normal Sec. 179 expensing limit generally applies to vehicles weighing more than 14,000 pounds. The limit for 2014 is $25,000, and the break begins to phase out dollar-for-dollar when total asset acquisitions for the tax year exceed $200,000. These amounts have dropped significantly from their 2013 levels. But Congress may still revive higher Sec. 179 amounts for 2014.
Even when the normal Sec. 179 expensing limit is higher, a $25,000 limit applies to SUV's weighing more than 6,000 pounds but no more than 14,000 pounds. Vehicles weighing 6,000 pounds or less are subject to the passenger automobile limits. For 2014, the depreciation limit is $3160.
Many additional rules and limitations apply to these breaks. So if you're considering a business vehicle purchase, contact us to learn what tax benefits you might enjoy if you make the purchase by December 31.
Documentation is Important with Family Loans
Today's low-interest-rate environment makes it easy to loan money to family members on favorable terms with full IRS approval. Here's a rundown of what the law covers and why now might be a good time to set up loans. Nothing in the tax law prevents you from making loans to family members (or unrelated people for that matter). However, unless you charge what the IRS considers an "adequate" interest rate, the so called below-market loan
rules come into play. Click here for full article.
Supreme Court Weighs in on ESOP's
Employee stock option plans (ESOPs) were conceived to be a "win-win" for businesses, under the right circumstances. The premise is, when employees have an equity stake in the company they work for, their interest will be aligned with owners because they actually become owners themselves. However, since the beginning of the Obama administration, the Department of Labor (DOL) has aggressively sought out cases it considers to include abusive valuations. Click here for full article
Save Time and Money: Pre-screen Recruits with 5 Questions
Most employers select finalists for new positions after a lengthy series of interviews. Of course, face to face interviews are important, but you can save a lot of time-and make better decisions-by asking applicants a few pointed questions over the telephone before you schedule any meetings. Click here for full article