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Seasons Greetings
Small Business News: IRS Raises Tangible Property Expensing Threshold
Contributed by Elite Bookkeeping & Tax Services
The Internal Revenue Service recently simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items.
The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item.
The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.
“We received many thoughtful comments from taxpayers, their representatives and professional tax community”, said IRS Commissioner John Koskinen. “This important step simplifies taxes for small businesses, easing the recordkeeping and paperwork burden on small business owners and their tax preparers.”
Responding to a February comment request, the IRS received more than 150 letters from businesses and their representatives suggesting an increase in the threshold. Commenters noted that the existing $500 threshold was too low to effectively reduce administrative burden on small business. Moreover, the cost of many commonly expensed items such as tablet-style personal computers, smart phones, and machinery and equipment parts typically surpass the $500 threshold.
As before, businesses can still claim otherwise deductible repair and maintenance costs, even if they exceed the $2,500 threshold.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.
For taxpayers with an applicable financial statements, the de minimis or small-dollar threshold remains $5,000.
American Corporate Enterprises, Inc. are not accountants and we do not offer tax advice.If you do not have a tax adviser and you need help with your bookkeeping or taxes, contact our affiliate:
Elite Bookkeeping & Tax Services (800) 416-3820
https://www.elitebookkeeping.biz
Business Financing and Incentives-Resources by State
Are you in need of some business financing in your state? Here are links to resources for loans, grants and tax incentives for you.
Alabama https://www.adeca.alabama.gov/Divisions/ced/cdp/Pages/SSBCI.aspx
Alaska https://www.commerce.alaska.gov/web/ded/FIN.aspx
Arizona https://www.azcommerce.com/start-up/incentives
Arkansas https://www.arkansas.gov/adfa/SSBCI/SSBCI.htm
California https://www.business.ca.gov/StartaBusiness/FinancingYourBusiness.aspx
Colorado https://www.advancecolorado.com/funding-incentives
Connecticut https://www.ct.gov/ecd/cwp/view.asp?a=1097&q=253520&ecdNav=|
Delaware https://delaware.gov/topics/startasmallbusiness.shtml
Florida https://www.enterpriseflorida.com/why-florida/business-climate/incentives/
Georgia https://www.georgia.org/small-business/finance/
Hawaii https://invest.hawaii.gov/business/financing/
Idaho https://business.idaho.gov/
Illinois https://www.illinois.gov/Business/Pages/financetaxes.aspx
Indiana https://iedc.in.gov/programs-initiatives
Iowa https://www.iasourcelink.com/funding
Kansas https://www.kansas.gov/business/funding.html#
Kentucky https://thinkkentucky.com/KYEDC/kybizince.aspx#SmallBusiness
Louisiana https://www.opportunitylouisiana.com/incentives
Maryland https://commerce.maryland.gov/fund
Massachusetts https://massecon.com/business-resources/incentives/
Michigan https://www.michiganbusiness.org/grow/incentives-taxes/#incentives
Minnesota https://mn.gov/deed/business/financing-business/index.jsp
Mississippi https://www.mississippi.org/home-page/business-services/entrepreneurs-small-business/
Missouri https://business.mo.gov/incentives/index.html
Montana https://businessresources.mt.gov/Finance
Nebraska https://www.neded.org/business/start-a-business/loan-guarantee
Nevada https://ssbci.nv.gov/About/About/
New Jersey https://www.nj.gov/njbusiness/financing/
New Mexico https://gonm.biz/business-resource-center/start/funding-sources-programs/
New York https://esd.ny.gov/BusinessPrograms.html
North Carolina https://blnc.gov/start-your-business/financial-resources
North Dakota https://www.business.nd.gov/finance/
Ohio https://development.ohio.gov/bs/bs_busgrantsloans.htm
Oklahoma https://okcommerce.gov/in-state-business-resources/incentives/
Oregon https://www.oregon.gov/business/Pages/financing.aspx
Pennsylvania https://community.newpa.com/programs/
Rhode Island https://commerceri.com/finance-business/
South Carolina https://www.scbos.sc.gov/
South Dakota https://sdreadytowork.com/Financing-Incentives.aspx
Tennessee https://www.tnecd.com/advantages/incentives-grants/
Texas https://gov.texas.gov/ecodev/financial_resources/loan_assistance
Utah https://www.utah.gov/business/starting/financial_starting.html
Vermont https://accd.vermont.gov/business/start/financing/lenders
Virginia https://www.yesvirginia.org/ProBusiness/BusinessIncentives
Washington https://www.access.wa.gov/topics/business/growbusiness/grantsloans
West Virginia https://www.business4wv.com/b4wvpublic/default.aspx?pagename=financialassistance
Wisconsin https://inwisconsin.com/grow/assistance/
Wyoming https://www.wyen.biz/business-services/financial-services/funding-sources/
Doing Business With States- Vendor and Procurement Resources
Are you interested in doing business with other states? Below are links for vendor and procurement resources for you.
Your Corporation or LLC would need to be registered in those states in order to do business there. We can help you with forming domestic entities as well as filing as foreign entities in every state.
Alabama https://purchasing.alabama.gov/Default.aspx
Alaska https://doa.alaska.gov/dof/iris/vendor.html
Arizona https://procure.az.gov/bso/
California https://www.dgs.ca.gov/pd/Home.aspx
Colorado https://www.colorado.gov/pacific/osc/procurement-resources
Connecticut https://das.ct.gov/cr1.aspx?page=8
Delaware https://business.usa.gov/external-site?ccontent=https://mymarketplace.delaware.gov/
Georgia https://doas.ga.gov/state-purchasing/suppliers
Hawaii https://spo.hawaii.gov/
Idaho https://purchasing.idaho.gov/
Illinois https://www.illinois.gov/cms/business/procurement/Pages/default.aspx
Indiana https://www.in.gov/idoa/2464.htm
Iowa https://das.iowa.gov/procurement/vendors/how-do-business
Kansas https://admin.ks.gov/offices/procurement-and-contracts/
Kentucky https://finance.ky.gov/services/eprocurement/Pages/doingbusiness.aspx
Louisiana https://wwwprd1.doa.louisiana.gov/OSP/LaPAC/pubMain.cfm
Maryland https://emaryland.buyspeed.com/bso/
Massachusetts https://www.mass.gov/anf/budget-taxes-and-procurement/oversight-agencies/osd/
Michigan https://www.michigan.gov/micontractconnect
Minnesota https://www.mn.gov/admin/government/purchasing-contracting/
Mississippi https://www.mscpc.com/bid-opportunities/
Missouri https://oa.mo.gov/purchasing#mogov-tabs-pane-4-tab-1
Montana https://vendorresources.mt.gov/
Nebraska https://das.nebraska.gov/materiel/purchase_bureau/vendor/vendor-info.html
Nevada https://purchasing.state.nv.us/
New Jersey https://www.nj.gov/njbusiness/contracting/
New Mexico https://www.generalservices.state.nm.us/statepurchasing/
New York https://nyspro.ogs.ny.gov/
North Carolina https://www.doa.nc.gov/pandc/Default.aspx
North Dakota https://www.nd.gov/spo/vendor/registry/
Ohio https://business.ohio.gov/state/
Oklahoma https://www.ok.gov/DCS/Central_Purchasing/Vendor_Registration/index.html
Oregon https://www.oregon.gov/DAS/EGS/PS/pages/supplier_info.aspx
Pennsylvania https://www.emarketplace.state.pa.us/
Rhode Island https://www.purchasing.ri.gov/bidinfo/geninfo/geninfo.aspx
South Carolina https://business.usa.gov/external-site?ccontent=https://procurement.sc.gov/PS/vendor/PS-vendor-new.phtm
South Dakota https://boa.sd.gov/divisions/procurement/vendors/
Tennessee https://www.tn.gov/generalservices/topic/vendor-information
Texas https://www.texasbidsystem.com/
Utah https://purchasing.utah.gov/vendorinformation.html
Vermont https://bgs.vermont.gov/purchasing
Virginia https://www.dmbe.virginia.gov/bid.html
Washington https://www.des.wa.gov/services/ContractingPurchasing/Pages/default.aspx
West Virginia https://www.state.wv.us/Admin/Purchase/vrc/default.html
Wisconsin https://doa.wi.gov/Divisions/Enterprise-Operations/State-Bureau-of-Procurement
Wyoming https://ai.wyo.gov/general-services/contracts–purchasing
Special Offer Through September
In case you missed our newsletter, we just wanted to remind you that through the month of September we are offering $50 off any incorporation package for any state.
View our package options at https://americancorpenterprises.com/compare-plans/
Also did you know that you can earn referral credit with us? Tell your friends about our special offer and if they place an order, you’ll receive referral credit. That applies even when we’re not running promotions.
Feel free to call us if you have any questions. Toll Free (888) 274-1130.
Thank you! We appreciate your business!