Bookkeeping News// UP TO DATE BOOKKEEPING AND ACCOUNTING INFO

Bookkeepers Adjust for Tax Extenders

Although the tax extenders bill, officially named the Tax Increase Prevention Act of 2014 or HR

5771, was passed just weeks before the end of the year, the Internal Revenue Service recently

announced that the 2015 tax season would open without delay. In his recent remarks, Tax

Commissioner John Koskinen said that IRS employees would continue to test and update the

system over the next few weeks to ensure that all of the kinks are worked out before tax filing

begins. The opening dates of the 2015 filing season have now been officially set as January 9,

2015 for business returns and January 20, 2015 for individual returns. With the start date for

business filing just around the corner, bookkeeping services providers must review their books to

ensure that the businesses they serve are receiving all of the tax advantages provided by the

recently passed tax extenders legislation.

In addition to other business tax advantages, HR 5771 extends the Research Tax Credit, the New

Markets Tax Credit and the Work Opportunity Tax Credit. In addition, it extends the opportunity

for businesses to claim a 50% bonus depreciation on newly acquired property that was placed in

service before the end of the 2014 calendar year. In order to eligible for this stepped-up

depreciation schedule, the property must meet certain requirements identified in the bill. On top

of this, the recently passed tax extenders legislation extends the opportunity to use Section 179

expensing and investment ceiling limits though end of 2014. The $500,000 expensing limit and

the $2.5 million investment ceiling limit had originally expired on December 31, 2013 and been

replaced by a $25,000 expensing limit and a $200,000 ceiling. However, the recent passage of

the tax extenders legislation reinstates the higher limits, thus providing a major tax advantage

to businesses across the board.

By reinstating many of the tax breaks that had expired at the end of 2013, the tax extenders

legislation provides a wealth of tax saving opportunities to businesses of all types. It is now the

job of bookkeeping services providers to make sure that these tax breaks are identified and

utilized to save tax dollars for the businesses they serve.

If your business is seeking an outsourced bookkeeping solution, the experienced professionals

at Orange County Bookkeeping can provide you with the expertise you are looking for. Our

licensed accountants and bookkeepers are equipped to serve Orange County businesses of any

size, structure or industry focus. Visit us today at www.ocbookkeeping.com to learn more

about our full range of bookkeeping, tax and business consulting services. Contact us by phone

at 949.242.9852 at or by email at info@ocbookkeeping.com to receive a free, no obligation

consultation.