H.R. 4457 America’s Small Business Tax Relief Act of 2014 which recently passed the House, would make the increased small business expensing limitations permanent for some depreciable business assets. The legislation would preserve the $500,000 expensing level that expired as part of Section 179, rather than allowing it to drop to $25,000. The provision phases out after investments top $2 million.

According to the Joint Committee on Taxation, enhanced expensing would reduce revenue by $73.14 billion from 2014 to 2024.

Lawmakers agreed to indefinitely extend the enhanced business expending under IRC Section 179, which expired last December, as well as various benefits for companies that switch from C corporation to status to S. Including provisions for S corporations that make charitable contributions.

Posted by Theodore H. Waggner, Esq., Associate Editor, Wealth Strategies Journal