Do you stay on top of all the existing and proposed laws that impact your business? Have your Small Business Accountants proactively reached out to you about the changes introduced in 2012 will begin to take effect in 2014? Several new laws and extension of old ones are now in force and will be reflected in your the filing of your 2014 taxes.
Finally realizing that small businesses are the key to a possible economic recovery on main street, the Ways and Means Committee of the U.S. Congress has drafted a bill aimed at bolstering small businesses.
The bill is designed to “strengthen the economy by helping small businesses expand operations, hire new workers and increase wages and benefits.”
Here are the key provisions of the draft bill:
- Allow businesses to immediately deduct expenses on building and equipment up to $250,000.
- Simplify and expand the use of cash based accounting. The current regulations are recognized as being overly complex.
- Provide a unified deduction for start up and organizational expenses
- Ease compliance by changing due dates for tax returns
There are also a wide array of separate provisions for Sub Chapter S and K Corporations and Partnerships including regulations that relate to how long a C Corporation must wait until it can convert to a Sub Chapter S, an increase in the amount of income that can be passive for a Sub Chapter S, repealing the rules that guarantee payouts to Partners, and many more.
Of course not all of these provisions may be in the final bill, but it is definitely worth reading this draft in more detail and discussing it with your Small Business Accountants.
Please contact us at A&B Accounting and Business Solutions if we may be of service helping you understand how these and other laws impact your business.