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SBA Hot Topic Tuesday – 5 Tax Changes Your Borrowers Needs to Prepare For

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September 2, 2014

By Bob Coleman
Editor, Coleman Report

taxformsSo long bonus depreciation, certain employee tax credits, and welcome to the Affordable Care Act. All will impact your borrower’s cash flow.

Fox Small Business has posted this excellent article recapping small business tax changes for 2015.

1) If your borrower has more than 50 employees find out what the impact on cash flow from implications of the Affordable Care Act.

2) If tax rates are lowered for corporations, small businesses that are structured a different way (e.g. LLCs) wouldn’t get the same tax advantages unless there were a parallel amendment to personal tax rates.

3) Bonus deprecation of $500,000 ended in 2013. The new amount is $25,000.

4) A 3.8 percent tax on net investment income became effective in 2013. Common scenarios where this new tax may be implicated is if you have rental income, a stock portfolio or other “passive” income.

5) The proposed “tax extenders” bill is an effort to renew $85 billion in temporary tax breaks for individuals and businesses. Although Reuters reported that the bill is stalled in the Senate until after the congressional elections in November, any decisions that follow may affect the 2015 tax season

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