Change to tax law might hurt organizations
July 24, 2012
Proper fixed asset management
relies on myriad facets of tracking, calculating and assessing an organization's inventory items. This becomes even more important when it comes time to have an annual or demanded audit of assets, as well as around tax season when the company must declare holdings.
A new reform is being pushed in the U.S. House of Representatives that would adjust Section 179 of the Internal Revenue Service's tax law, which deals with bonus depreciation
deduction, Americans for Tax Reform reports. According to the source, the proposed changes would effectively replace Section 179 benefits like bonus depreciation with the Modified Accelerated Cost Recovery System (MACRS).
MACRS, the source purports, will cost tens of thousands of dollars annually for most smaller firms that have expanded or are planning to expand, as what previously qualified as eligible deductions will no longer be classified as such.
These adjustments will make it even more difficult to see returns on properties owned, which puts a heavy emphasis on proper asset depreciation
management. Tax depreciation schedules
, coupled with fixed asset management solutions, can ensure that reporting is effective and leads to strong tax reimbursements.