Community Bank 2015 Year-End Tax Planning

Financial Institutions

November 01, 2015
by Mary Coates, CPA

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Mary Coates Mary Coates, CPA
Senior Manager

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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
  • S corporations

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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