With the End of the Year Only Days Away- Senate Approves Tax Extenders for 2014 OnlyTue, 16 Dec 2014 19:50:09 CST
The U.S. Senate voted 76 to 16 on Tuesday evening to pass a tax extenders package that holds key provisions for small businesses such as section 179 expensing and bonus depreciation. The tax extenders package was previously approved in the U.S. House of Representatives and now heads to the White House for approval. National Cattlemen’s Beef Association President Bob McCan said this is great news for cattlemen and women.
“America’s cattle producers are primarily family-owned small businesses who need stability in the tax code in order to make sound business decisions,” said McCan, a cattleman from Victoria, Texas. “This tax extenders package encourages economic growth and provides greater certainty in the tax code.”
Kent Bacus, director of legislative affairs for NCBA, said the extension of Section 179, a provision that provides a higher deduction level for some capital expenditures, like machinery and equipment, and the extension of bonus depreciation are key for producers.
“Last year producers were able to expense up to $500,000 on capital investments, but this year that was lowered to $25,000,” said Bacus. “For large equipment purchases and other capital investments, cattle producers need certainty in order to properly plan for their business.”
The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken. For tax year 2014, this means the equipment must be put into service between January 1, 2014 and December 31, 2014. That means to take advantage of this expanded tax break- you must buy, take delivery and have the equipment being used by the end of the year.
Unfortunately, the retroactive extension means producers will be operating under an expired tax code in 2015, but it could add the needed pressure to complete a comprehensive tax reform deal in the New Year, said Bacus.
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