Sage Fixed Assets

Good news
for your business

We don’t want you to pay any more in taxes than you have to so Sage Fixed Assets 2015 includes all of the updates to ensure you are getting the most out of the Tax Increase Prevention Act extension for the 2014 Tax year.

#NotOneDollarMore

What you need to know

In mid-December, Congress passed bill HR 5771, with President Obama signing the bill into law on December 19 as the Taxpayer Increase Prevention Act of 2014 (TIPA). This Act extends and increases the first-year deductions for most fixed assets acquired in 2014. Yes, it is applied retroactively to January 1, 2014—so anything you purchased in 2014 may be affected.



TIPA highlights

  • Nearly all the provisions that expired December 31, 2013 are extended through December 31, 2014.
  • TIPA is applied retroactively to January 1, 2014.
  • The 2013 179 expensing deduction amount and investment limits are retained ($500,000 and $2,000,000, respectively) and extended one more year.
  • The 50% Bonus for qualified property is extended through 12/31/2014 (or 12/31/2015 for certain property with longer production periods).
  • The $8,000 “bump-up” in depreciation deduction in the first year for qualified autos and trucks is extended.
  • Accelerated depreciation for Indian Reservation property is extended for one more year.
  • 15-year cost recovery period for qualified leasehold improvements, restaurant building and improvements, and retail improvements is extended through 12/31/2014.
  • Several other provisions were extended such as provisions for empowerment zones, race horses, motorsports complexes, mine safety equipment and many others.

Here's an example

Assume $100,000 of assets were placed in service in 2014 that have a 7-year tax life and which qualify for the bonus—such as machinery or furniture and fixtures.

Without the bonus ($100,000 / 7
years x 200% x ½ year convention)

$14,286
 

With the bonus ($50,000 bonus + ($50,000 / 7 years
x 200% x ½ year convention))

$57,143
 


So a company can deduct $42,857 more on their tax return than before TIPA. Multiply $42,857 by the effective tax rate to estimate the cash flow savings.

Make sure you don’t pay one dollar more in taxes than you should. Sage Fixed Assets 2015 has all the required updates built into the already robust depreciation engine. Make sure you are using the right tool to get every dollar back.

Call us today at 800-368-2405.

Retroactively apply the bonus

Review all of your 2014 asset purchases and retroactively apply the 50% Bonus depreciation to all qualified assets, if doing so would maximize your tax situation.

Apply the 179 deduction

Review your current tax situation to determine if it would benefit you to take advantage of the increased Section 179 expensing deduction.

Get it done quickly

For Sage Fixed Assets desktop customers, the “168 Allowance Switch” and the “Tax Expense” report are two features that will help you quickly apply the extended provisions.

Sage Fixed Assets 2015 includes all of these provisions and the ability to apply them. Don’t wait until it’s too late to take advantage of these savings.

Sage
800-368-2405

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