April 24, 2014

Business Tax Update

Barbara Miracle | 3/1/2007

FEDERAL

Expensing -- Businesses may expense up to $112,000 of new or used depreciable, tangible personal property using the section 179 deduction. That figure is up from $108,000 in 2006. The section 179 deduction is useful for businesses buying new or used equipment, computers and computer software. If the business spends more than $450,000 on section 179 property, the amount of the deduction is reduced by $1 for every $1 over $450,000. Check IRS Publication 946, "How to Depreciate Property," for more details.

Mileage -- The business mileage rate as of Jan. 1 is 48.5 cents per mile. That's up from 44.5 cents last year.

Qualified Transportation Fringe Benefit -- Businesses can exclude the value of qualified transportation fringe benefits from employees' wages up to specified limits.

In 2007, the limits are up to $215 per month in work-related parking and $110 per month in mass transit or vanpool expenses.

STATE

Intangible Personal Property Tax -- As of 2007, businesses (as well as individuals, married couples and personal representatives of estates) no longer are required to file intangible personal property tax returns on stocks, bonds, mutual funds, money market funds, shares of business trusts and unsecured notes. Any intangible taxes owed to the state of Florida from previous years are still due.

Not all intangible personal property taxes have been repealed. The intangible tax on leases of government-owned real property and the one-time intangible tax on notes secured by a mortgage on Florida real property are still in effect.

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