tax research Accounting Software
Parker Pro Library
online tax research Parker Tax Pro Library tax research Like us on Facebook Follow us on Twitter View our profile on LinkedIn Find us on Pinterest
federal tax research
CPA Client Letter Samples
Accounting and tax
Tax Research Articles Tax Research Parker's Tax Research Articles Accounting Research CPA Client Letters Tax Research Software Client Testimonials Tax Research Software tax research


Tax Research Parker Tax Pro Library

Also see: Free CPA Client Letter: Regarding 2014 TIPA For INDIVIDUALS.
             In-Depth: Tax Extenders Bill Passes Congress, President Expected to Sign into Law.

Tax Software

        

Tax Software

CPA CLIENT LETTER: Regarding 2014 TIPA For Businesses
(Parker Tax Publishing: December 17 2014)

Dear [client name],

On December 16, Congress passed the Tax Increase Prevention Act of 2014 (TIPA), which the President is expected to sign into law. TIPA retroactively extends many business tax breaks through the end of the 2014 tax year.

If you have made business decisions over the past year on the assumption that the tax breaks would be extended, your bet has paid off. If you've held off on making certain investments until the tax incentives were in place, you now have a narrow window of opportunity to take advantage of the extensions.

The two biggest items that may affect you are the increased expensing allowance and the increased bonus depreciation provisions. For tax years beginning in 2014, you can now expense up to $500,000 of qualified property placed into service in those years (i.e., the Section 179 deduction). Had this tax break not been extended, the maximum amount you could expense for 2014 would have been $25,000. Note that the total amount of property that you can place into service before having to reduce your Section 179 deduction is $2,000,000. The amounts that may be expensed can include up to $250,000 of the cost of qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property.

As you know, businesses can recover the cost of capital expenditures over time through depreciation. In 2012 and 2013, you were entitled to take 50 percent bonus depreciation for assets placed in service during those years. TIPA extends the 50 percent bonus depreciation provision for qualifying property purchased and placed in service before January 1, 2015 (before January 1, 2016, for certain longer-lived and transportation assets) and also allows you to elect to accelerate some AMT credits in lieu of taking the bonus depreciation.

Bear in mind that if you decide to make any last-minute investments to take advantage of the increased Section 179 expensing limits or the extended bonus depreciation provisions, any assets acquired would have to be placed in service by December 31.

Numerous other favorable tax incentives were extended under the new law. The following is a list of some of the tax provisions that were extended through 2014:

(1) the tax credit for research and experimentation expenses;

(2) the new markets tax credit;

(3) employer wage credit for activated military reservists;

(4) the work opportunity tax credit;

(5) the three-year depreciation for race horses two years old or younger;

(6) the 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements;

(7) the seven-year recovery period for motorsports entertainment complexes;

(8) the rule for adjusting stock of an S corporation making charitable contributions of property;

(9) the reduction of the recognition period for the built-in gains of S corporations;

(10) the 100 percent exclusion from gross income of gain from the sale or exchange of certain small business stock;

(11) the 9 percent low-income housing tax credit rate for newly constructed non-federally subsidized buildings;

(12) the deduction for contributions of food inventory by taxpayers other than C corporations;

(13) tax incentives for investment in empowerment zones;

(14) the deduction for income attributable to domestic production activities in Puerto Rico;

(15) tax rules relating to payments between related foreign corporations;

(16) rules for the tax treatment of certain dividends of regulated investment companies (RICs); and

(17) the subpart F income exemption for income derived in the active conduct of a banking, finance, or insurance business.

As you can see, the provisions in the Tax Increase Prevention Act of 2014 are quite extensive. Please call me at your earliest convenience so we can discuss how they will affect your 2014 tax liability, and how to best leverage these tax breaks to the advantage of your business during the small window of time available.

Sincerely,

[Your Name, Your Firm]

Also see: Free CPA Client Letter: Regarding 2014 TIPA For INDIVIDUALS.

Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.

Parker Tax Pro Library - An Affordable Professional Tax Research Solution. www.parkertaxpublishing.com


Professional tax research

We hope you find our professional tax research articles comprehensive and informative. Parker Tax Pro Library gives you unlimited online access all of our past Biweekly Tax Bulletins, 22 volumes of expert analysis, 250 Client Letters, Bob Jennings Practice Aids, time saving election statements and our comprehensive, fully updated primary source library.

Parker Tax Research

Try Our Easy, Powerful Search Engine

A Professional Tax Research Solution that gives you instant access to 22 volumes of expert analysis and 185,000 authoritative source documents. But having access won’t help if you can’t quickly and easily find the materials that answer your questions. That’s where Parker’s search engine – and it’s uncanny knack for finding the right documents – comes into play

Things that take half a dozen steps in other products take two steps in ours. Search results come up instantly and browsing them is a cinch. So is linking from Parker’s analysis to practice aids and cited primary source documents. Parker’s powerful, user-friendly search engine ensures that you quickly find what you need every time you visit Our Tax Research Library.

Parker Tax Research Library

Dear Tax Professional,

My name is James Levey, and a few years back I founded a company named Kleinrock Publishing. I started Kleinrock out of frustration with the prohibitively high prices and difficult search engines of BNA, CCH, and RIA tax research products ... kind of reminiscent of the situation practitioners face today.

Now that Kleinrock has disappeared into CCH, prices are soaring again and ease-of-use has fallen by the wayside. The needs of smaller firms and sole practitioners are simply not being met.

To address the problem, I’ve partnered with a group of highly talented tax writers to create Parker Tax Publishing ... a company dedicated to the idea that comprehensive, authoritative tax information service can be both easy-to-use and highly affordable.

Our product, the Parker Tax Pro Library, is breathtaking in its scope. Check out the contents listing to the left to get a sense of all the valuable material you'll have access to when you subscribe.

Or better yet, take a minute to sign yourself up for a free trial, so you can experience first-hand just how easy it is to get results with the Pro Library!

Sincerely,

James Levey

Parker Tax Pro Library - An Affordable Professional Tax Research Solution. www.parkertaxpublishing.com

    ®2012-2016 Parker Tax Publishing. Use of content subject to Website Terms and Conditions.

IRS Codes and Regs
Tax Court Cases IRS guidance