Year-end tax planning for 2015 will once again be challenging for community banks due to potential beneficial extensions of provisions in the tax laws (known as extenders) that are expected to pass but haven’t been voted on yet. Numerous provisions may be in the extender package including:
50% bonus depreciation
Enhanced Section 179 expensing of $500,000 (vs. the current $25,000)
Shortened built-in gains tax periods for subchapter
Although many in the House and Senate support these measures, there is disagreement on how to pay for them. Throw in the politics related to the upcoming election and it only increases the uncertainty. Most likely, it is expected that in very late December Congress will enact a short-term extenders package that will be retroactive to January 1, 2015, and be effective through December 31, 2016.
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