News Update 06/20/14: Section 179 In Limbo For Now
The White House threatened vetoes of both bills stating that the administration supports extension of the expensing provision with revenue offsets. The law stands as it was for 2013 for now. We are waiting for an update, however it is business as usual for us on Yacht Business Ownership, so check back with us periodically for updates.
News Alert 06/13/2014: Great News For Yacht As A Business buyers!
Legislative update: House Passes Section 179 Expensing Increase
The House approved two bills this week that would permanently extend several expired provisions, permanently extending the increased section 179 expense maximum for small business investment from $25,000 to $500,000.
This is great news for those who are looking to offset the cost of yacht ownership. By placing their yachts into management to operate their yacht as a business, they can benefit from substantial tax advantages. The IRS rule is that equipment must be available for service in the year which the deductions are used.
Therefore, if you are eligible and want to take advantage of the tax deductions, we recommend swift action as yacht inventories will quickly sell out.
H.R. 4457 [PDF 258 KB], America’s Small Business Tax Relief Act of 2014
Would permanently extend the increased section 179 expensing maximum for small business investment from $25,000 to $500,000, with the threshold over which such expensing is phased out, from $200,000 to $2 million
Would expand qualifying investments to software
The Joint Committee on Taxation estimated that the bill would cost $73.1 billion over 10 years.
H.R. 4453 [PDF 251 KB] S Corporation Permanent Tax Relief Act of 2014, contains two extender provisions.
The first would require that corporations converting from C to S corporation status must hold assets for five years, rather than 10 years as under permanent law, to avoid the corporate tax rate on the built-in gain.
The second provision would allow the adjusted basis of a charitable contribution, rather than fair market value, to be used in calculating an S corporation shareholder’s tax benefit from the charitable contribution.
Contact us for a full update and more information on how to take advantage of this ruling.
