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Many Tax Provisions Set To Expire at Year End

Small Business Expensing: Sec. 179 Expense

Sec. 179 allows businesses to write off some or all of the acquisition costs of qualifying properties, as opposed to depreciating them over the life of the asset. The annual limitation was $500,000 in 2011 but dropped to $125,000 in 2012. It was expected to drop to $25,000 in 2013. While this amount is the maximum amount that can be expensed, the annual dollar amount is reduced dollar for dollar by the amount that the taxpayer’s total investment exceeds the annual investment limits. This annual investment limit likewise has been decreasing. The amount was $2 million in 2011 and $500,000 in 2012, and it was expected to drop to $200,000 in 2013.

There were concerns that these reductions would hinder the desire for small businesses to invest and further depress economic recovery. As a result, ATRA retroactively reinstated the $500,000 limit for 2012 and continued this limit for 2013. In addition, the $2 million annual investment limit was retroactively reinstated for 2012 and prospectively continued for 2013. ATRA also extended the rule allowing taxpayers to expense off-the-shelf computer software under Sec. 179. The retroactive extension of the annual limitation and investment limit may provide planning opportunities for an immediate write-off of expenditures.

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more than an accounting firm featuring top minneapolis accountants

We are Proud to Be Your Minneapolis Accountants

W.A. Campion Co., P.C. is more than the typical accounting firm. While we do provide traditional tax preparation and accounting services in Minneapolis, we also offer other business advisory and financial services to our clients helping them with the financial decisions crucial to the success of their businesses.

Testimonials

Liman Post & Beam’s owner, Leo Kill’s relationship with W.A. Campion started 29 years ago with founder, Joe Campion. Liman Post & Beam is a custom build construction company with a lumberyard serving residential, commercial and agriculture customers across the upper Midwest. “The business keeps me and the guys busy full time estimating and building. W.A. Campion does all of our business accounting, including payroll and bill pay making sure that expenses are assigned to the right job.” Mr. Kill says. “Bill Campion is my financial advisor as well. If I do something financial I run it by him. Bill definitely keeps me out of trouble.”
Zirc Company, Linda Robasse, VP Finance, says, “W.A. Campion takes care of all of our accounting and financial needs – payroll, corporate and personal taxes, financial statements, and even estate planning. They consult with us on our overall business as well. Bill and his team are straight-forward yet easy-to-work with which helps me concentrate on managing the Zirc Company’s finances.” Zirc is a manufacturer and distributor of dental products located in Buffalo Minnesota and has worked with W.A. Campion for 19 years.
Cliff Lake, Principal of a local music retailer has known Bill Campion for over 20 years and has employed him as his C.P.A. for the past 12 years. “As a retailer, I require a monthly review of financials to include P&L statements, and balance sheets, plus I have Campion file the monthly payroll taxes. Operating a retail business keeps me busy and there is no one on staff to handle the financials, which Campion does at a reasonable cost. Campion and his entire staff are very responsive. They get back to me same day, and often within the hour,” Lake said.