CMBA

Business News from Schlenner Wenner

18 Jul 2017 2:06 PM | Colleen Corrigan (Administrator)

by Travis M. Notch, C.P.A. - In-Charge Accountant
Schlenner Wenner & Co. | Certified Public Accountants & Business Consultants

Highlighted below are some upcoming notes for either changes in the tax law or updates to current law.

First, linked here are some details on the upcoming Minneapolis minimum wage increase that could affect any employers in that area, but the MN minimum wage does increase to $9.50 per hour as of August 1. 

Also, our latest contractor newsletter has some good information.

Then, a couple of items to be aware of with construction companies buying equipment are the limitations to expense the cost of that equipment on the tax returns. For 2017, the amount of purchased assets that a company can expense under Section 179 has been adjusted to $510,000 ($500,000 in 2016) with a threshold of $2,030,000 in equipment additions before a phase-out.  Another option for businesses is to take special bonus depreciation on purchases of new assets, which will allow business to take a 50% deduction of the cost of the assets without using the Section 179 expense.  Although this deduction is phasing out in the next couple of years.  Companies can take a 50% deduction for 2017, 40% for 2018, and 30% for 2019 and 2020.  The bonus depreciation election will go away after that.

I hope that you find this information helpful,

Travis M. Notch, C.P.A.

In-Charge Accountant


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