Tag Archives: Business Taxes

179 tips to help Cash Flow

Here is a tip that may help your personal and Business Cash flow.  In 2015 there was an Act passed in Congress called PATH. This $622 Billion dollar tax cut has nearly 100 different provisions to help a wide variety of tax payers.

  • the Protecting Americans from Tax Hikes Act

The essence of this act was to help keep more cash in the pockets(or Bank accounts) of Small & Medium sized Business Entities(SME’s) and the average citizen.  An SME’s  is a business of less than 500 employee’s.  What you may want to speak to your Tax professional  specifically about what is called,

Tax code 179

Tax code 179 is about buying or leasing equipment for your business that may be deducted rather than depreciated.  Depending on the expense, it may let you only deduct a % of the expense, but it will still help you keep the cash in your business. This is different from prior years and I have an example below of how to capitalize on this.

There is a list of approved items this code helps and of course there is an additional tax form that needs to filed.  But it may be worth looking into depending what your expenses were in 2015.  Using a one time deduction rather than depreciating these expenses may bring money back that you can use in your cash flow.

Here is a quick look at some of the items this code includes;
Computers and Software
-Office Equipment and Fixtures
-Large Business Equipment and Machines
-Business Vehicles
-Single-Purpose Structures
-Manufacturing Tools
Informational links-

http://www.section179.org/simplifying_section_179.html

A really nice overview pdf created Wolters Kluwer – https://www.bdo.com/getattachment/2ccf64fd-5806-452d-a27b-d976cf8f146a/attachment.aspx

Click here for more information about Cash Flow from C.S.Simons Consulting
Form 4562 is needed for the deduction-

http://www.section179.org/Form_4562_for_2015_Section_179.pdf

 

A quick illustration, thanks to Crest Capital of how this may help you;

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Carpe diem!