Congress is currently debating whether or not to reinstate the 50% bonus depreciation rule for 2015. A decision is expected sometime around the middle of December this year.
Bonus depreciation rules have been around for the past five or six years. They allow businesses (including family child care providers) to depreciate certain items faster, allowing them to claim higher business deductions in the first year.
Congress ended the 50% bonus depreciation rule as of the end of 2013. In late December of 2014 they reinstated it for 2014. At that time I wrote this article: “The 50% Bonus Depreciation Rule is Back for 2014!”
I don’t know for sure if this rule will be reinstated for 2015. My sense is that it will be, although it may not be exactly like it was in 2014.
If a bonus depreciation rule is reinstated for 2015, and you are thinking about purchasing items for your business such as furniture, appliances, fences or patios, you may want to purchase them before the end of 2015 to take advantage of the extra tax benefit.
This doesn’t mean you should buy something in 2015 to get a tax benefit. You are always financially better off not spending money on your business. However, if you already have plans to buy something, it may make sense to buy it before the year is over.
When and if Congress makes a decision about a bonus depreciation rule, I will immediately post an article about it.
Tom Copeland – www.tomcopelandblog.com