Today's Asset Purchase
Could Turn Into Tomorrow's Tax Break
anyone? If your business is in need of office equipment,
computer software or perhaps an HVAC system, the purchase you
make today could provide you with a tax break tomorrow - or,
more specifically, when you're ready to file your 2016 taxes.
The Section 179 expensing deduction remains a solid potential
tax-saving value for today's companies.
Sec. 179 of the Internal Revenue Code allows businesses to
elect to immediately deduct - or "expense" - the cost of
certain tangible personal property acquired and placed in
service during the tax year. This is instead of claiming the
costs more slowly through depreciation deductions. The
election can only offset net income, however. It can't reduce
it below $0 to create a net operating loss.
The election is also subject to annual dollar limits. For
2016, businesses can expense up to $500,000 in qualified new
or used assets, subject to a dollar-for-dollar phaseout once
the cost of all qualifying property placed in service during
the tax year exceeds $2 million.
real property, too
The expensing limit and phaseout amounts would have been far
lower had Congress not passed the Protecting Americans from
Tax Hikes Act in late 2015. The new law made the limits
permanent, indexing them for inflation beginning this year. It
also makes permanent the ability to apply Sec. 179 expensing
to qualified real property, such as eligible
leasehold-improvement, restaurant and retail-improvement
Finally, the new law permanently includes off-the-shelf
computer software on the list of qualified property. And,
beginning in 2016, it adds air conditioning and heating units
to the list.
You can use Sec. 179 expensing for both new and used property.
A related tax break, bonus depreciation, applies only to new
property. Be sure to consider all options when purchasing
assets. Questions? Please call us - we can help you identify
the right depreciation tax breaks for your business. 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,