CFO Consulting Services, A Long Island Accountant Provider, Unveils Small Business Tax Breaks

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Following an article published by The Washington Post, CFO Consulting Services, a leading Long Island accountant provider, discusses fleeting small business tax breaks.

Lawrence Teicher, prominent Long Island accountant and founder of CFO Consulting Services, responds to an article published by The Washington Post, which discusses the four tax breaks available to small businesses now that will not be available in 2014.

According to The Washington Post article titled “Small business advice: Hurry, these four tax breaks expire at the end of the year,” over fifty federal tax breaks are set to expire when the clock strikes midnight on New Year’s Eve. While the majority of these tax breaks are inconsequential for small business owners, the article says there are four tax breaks that every small business owner should consider taking advantage of while they still have the chance.

The first of these tax breaks, the Section 179 deduction, allows firms to deduct the cost of purchasing assets like equipment and software. Though this tax deduction will not expire in 2014, the expensing limit is scheduled to drop from $500,000 to $25,000 next year. This means businesses might have to depreciate their capital expenditures over multiple years to maintain their tax deductions. For businesses that have equipment needs, owners should consider purchasing as soon as possible.

The R&D tax incentive, which provides businesses a tax credit for developing or improving their manufacturing process, and the energy tax incentives, which credits companies that “go green” will completely expire at the end of the year. Both are great ways for factory-centered businesses to upgrade their facilities at a low cost.

The last of the tax breaks allows small business to write off small purchases without the fear that the IRS will disallow the immediate deduction. Although this provision does not go into effect until 2014, you should take action before the end of the year in order to benefit from it in 2014. The article explains the steps you will need to take in order to gain from this tax break. “To take advantage of this provision in 2014, you must have a formal capitalization policy in place as of the first day of the year and you must follow that policy for financial statement purposes. So act now to establish your written policy for writing off small asset purchases.”

Lawrence Teicher, leading Long Island accountant and founder of CFO Consulting Services, agrees that small businesses should be aware of expiring tax breaks. “Tax breaks can sometimes be negligently ignored,” he says.” However, they can lead to significant corporate savings. These four tax breaks clearly fit into that category, especially for manufacturing businesses. CFOs and CPAs should always check to see which tax breaks are expiring in order to save their company funds that could be used elsewhere. If you’re a business owner it’s necessary to ask if you are eligible for any existing tax breaks.”

Teicher believes that it is the job of the CFO to be on top of their businesses’ economic opportunities. “A good CFO should be greatly involved in searching for economic opportunities including expiring tax breaks. If your CFO or Controller does not bring opportunities like this to the table, you may want to consider making a change.”                                                                                

CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.

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Lawrence Teicher
CFO consulting services
since: 08/2013
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