Extension Means Businesses Can Take Bonus Depreciation on
Their 2015 Returns
- But Should They?
depreciation allows businesses to recover the costs of
depreciable property more quickly by claiming additional
first-year depreciation for qualified assets.
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
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
Acquiring the property in 2015 isn't enough, however. You must
also have placed the property in service in 2015.
Should you or shouldn't
you're eligible for bonus depreciation and you expect to be in
the same or a lower tax bracket in future years, taking bonus
depreciation (to the extent you've exhausted any Section 179
expensing available to you) is likely a good tax strategy. It
will defer tax, which generally is beneficial.
But if your business is growing and you expect to be in a
higher tax bracket in the near future, you may be better off
forgoing bonus depreciation. Why? Even though you'll pay more
tax for 2015, you'll preserve larger depreciation deductions
on the property for future years, when they may be more
powerful - deductions save more tax when you're in a higher
We can help
you're unsure whether you should take bonus depreciation on
your 2015 return - or you have questions about other
depreciation-related breaks, such as Sec. 179 expensing -
contact us. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,