KRS partner Simon Filip, CPA, recently had the opportunity to discuss tax planning and the PATH Act of 2015 in the “Running Your Business” blog published by Wells Fargo.
Congress passed the Protecting Americans from Tax Hikes (PATH) Act of 2015, which reinstated several expired tax extenders – temporary tax breaks passed by Congress to stimulate the economy.
The article, Five Ways the PATH Act Can Reduce Your Tax Burden, outlines the five provisions of the PATH Act that can help the bottom line for small business owners. These include the Section 179 tax deduction, bonus depreciation, work opportunity tax credit, energy tax credits, and the R&D tax credit.
Says Filip, “The PATH Act eliminates some uncertainty, which will make it easier for small business to plan their tax liability.”
Now more than ever, tax planning is important for small businesses. “It’s important to be proactive,” he says. “Sitting down with your tax practitioner to discuss these provisions before the end of the year can help you make business decisions that improve your after-tax cash flow.”