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Tax Tip: New Tax Rules for Buying or Improving Property

The IRS issued final regulations effective for tax years beginning in 2014 that clarifies when business owners can deduct the cost of acquiring, producing or repairing tangible property. For example, the costs of resurfacing a floor to keep the property in good condition would be deducted immediately, whereas the removal of a floor and instillation of a new floor should be capitalized. Almost all businesses will be affected by the new regulations. The good news is that taxpayers with an election for 2015 may deduct any single item whose cost does not exceed $500 per invoice or item. For 2016, this amount will increase up to $2,500.

If you have questions about or buying or improving property or need assistance with your tax return preparation call the accountants at Ketel Thorstenson with offices in Rapid City, Custer, Spearfish, and Williston. We are here to help. We are your “Friends for Life.”

Ketel Thorstenson, LLP

Ketel Thorstenson, LLP

Ketel Thorstenson, LLP, has over 55 CPA’s on staff and has been serving clients across the region since 1936. With offices in Rapid City, Spearfish, Custer, SD, and Gillette, WY, the firm offers a variety of services including tax planning and return preparation, audit services, QuickBooks, bookkeeping, payroll, business valuation and estate planning.
Ketel Thorstenson, LLP

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