New Retail and Restaurant Safe Harbor

Retail and restaurant businesses are continually expending funds to remodel or refresh their buildings in order to stay competitive within their community and market.  Typically, these expenditures are quite large and may be required to be capitalized and depreciated over 15 or 39 years.  However, the IRS recently released a new Revenue Procedure (Rev. Proc. 2015-56) which may provide relief for certain costs incurred on a qualifying building by qualifying taxpayers.

Gift Cards

With the holiday season here upon us, what was on your wish list? Better yet, what was on your store’s customers’ wish list? Approximately two-thirds of American consumers will purchase at least one gift card this holiday season.  The way that gift cards have been marketed, sold, and redeemed by retailers has evolved over time.

State Enterprise Zones

Are you thinking about relocating your business to a new location?  Or how about expanding to a new community?
In order to help out certain demographics of individuals and geographic areas, many state and local governments have designated specific areas as Enterprise Zones (EZs).  EZs were created by state and local governments to promote development in economically distressed areas.  State EZs started in the 1980s, and currently a majority of states have designated EZs.

Advertising Versus Business Gift Expenses

As a business owner, you find many creative ways to promote your business and attract customers. Besides the standard print or media advertising, you may decide to pass out pens or other trinkets with your company’s name printed on them. Or you may send gift baskets or event tickets to a particularly influential customer or business partner, with the intention of maintaining a good business relationship. These business expenses may not always be treated the same way for tax purposes.

IRS Raises Tangible Property Expensing Threshold to $2,500

As you know, the costs of running your business are increasing year after year, and $500 can seem like a drop in the bucket when it comes to purchasing the machinery, equipment and other similar property necessary to operate at peak performance.  After some prodding from taxpayers and their tax advisers, the IRS issued Notice 2015-82 which raised the safe harbor threshold for deducting certain capital items from $500 to $2,500 for those businesses which do not maintain applicable financial statements (typically audited financial statements).  This change will affect virtually every small bu


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