CPA Blog

Extension means businesses can take bonus depreciation on their 2015 returns – but should they?

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Published: Tuesday, 02 February 2016 11:53

Written by Phillip Strickler, CPA.CITP

Bonus depreciation allows businesses to recover the costs of depreciable property more quickly by claiming additional first-year depreciation for qualified assets. The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) extended 50% bonus depreciation through 2017.

The break had expired December 31, 2014, for most assets. So the PATH Act may give you a tax-saving opportunity for 2015 you wouldn’t otherwise have had. Many businesses will benefit from claiming this break on their 2015 returns. But you might save more tax in the long run if you forgo it.

What assets are eligible

For 2015, new tangible property with a recovery period of 20 years or less (such as office furniture and equipment) qualifies for bonus depreciation. So does off-the-shelf computer software, water utility property and qualified leasehold-improvement property.

Acquiring the property in 2015 isn’t enough, however. You must also have placed the property in service in 2015.

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File early to avoid tax identity theft

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Published: Friday, 29 January 2016 15:58

Written by Phillip Strickler, CPA.CITP

If you’re like many Americans, you may not start thinking about filing your tax return until the April 15deadline (this year, April 18) is just a few weeks — or perhaps even just a few days — away. But there’s another date you should keep in mind: January 19. That’s the date the IRS began accepting 2015 returns, and filing as close to that date as possible could protect you from tax identity theft.

How filing early helps

In this increasingly common scam, thieves use victims’ personal information to file fraudulent tax returns electronically and claim bogus refunds. When the real taxpayers file, they’re notified that they’re attempting to file duplicate returns.

Tax identity theft can cause major headaches to straighten out and significantly delay legitimate refunds. But if you file first, it will be the thief who’s filing the duplicate return, not you.

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4 keys to telecommuting success

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Published: Thursday, 14 January 2016 14:33

Written by Phillip Strickler, CPA.CITP

If your company is getting aboard the telecommuting trend, consider the following four keys to success:

1. Set a trial period. Begin with a two- to six-month period during which the employee and his or her manager can get a feel for just how (and whether) this arrangement will work. If either side is unhappy at the end of the trial period, make adjustments or scrap the idea entirely.

2. Manage for results. Generally, telecommuters should be managed based on results — not on close scrutiny of everyday work methods. That said, instruct managers to schedule regular telephone calls and request status reports (as necessary) to stay in the loop.

3. Don’t forget about them. Just because they work remotely doesn’t mean they’re no longer part of the team. Include telecommuters in companywide e-mail announcements and invite them to meetings or events held at the office — even if you think they won’t be able to attend.

4. Provide quality technology. Telecommuters should have a reliable computer, Internet connection, telephone (with voice mail), and all the necessary software and network connections. This may seem obvious, but many people launch into telecommuting without considering the nuts and bolts of doing so.

Telecommuting arrangements can also save your company money, such as on office space. 

© 2016

Review your fringe benefits to see what you might be missing

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Published: Tuesday, 05 January 2016 13:10

Written by Phillip Strickler, CPA.CITP

A business can offer many things as fringe benefits. So it’s a good idea to occasionally review the possibilities to see whether you might be missing something that could help you attract and retain the best employees. Two broad categories that are generally deductible by the employer and tax-free to employees are:

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