Pit & Quarry, February 2015

BUSINESS the entire cost of up to 500000 of new or used computer equipment heavy vehicles fixtures furniture in fact most depreciable assets with less than a 20 year life Because the Section 179 expensing deduction is limited to the taxable income of the aggregates producer with any excess carried forward bonus depreciation may be more valuable After all those actively involved in running a business cannot only claim losses generated by 50 percent bonus depreciation against other income but they can also carry any still unused losses back for two years and get a refund check from Uncle Sam And dont forget an aggregates producer may be able to use Section 179 expensing on qualified improvements to leased property that was placed in service by Dec 31 2014 Of course theres a limit of 250000 on qualifying property New life for leasehold improvements In addition to the Section 179 first year expensing allowance the new law extends the inclusion of qualifying leasehold improvement property that was placed in service in 2014 into the 15 year Modified Accelerated Cost Recovery System MACRS class for depreciation purposes that is it can be depreciated in 15 years under MACRS Work opportunity tax credit Under the tax extender bill a crushed stone sand or gravel business can again apply for the Work Opportunity Tax Credit if it hires military veterans and active reservists An even larger credit is available to small businesses that hire individuals who receive supplemental security income or long term family assistance Credits are also available for long unemployed or service disabled veterans Other hiring related provisions that were restored for the 2014 tax year are credits for businesses that hire qualified ex felons or qualified summer youth employees Small business financing The 100 percent exclusion from capital gain allowed on the sale or exchange of qualified small business stock held for more than five years by non corporate investors has been extended Stock acquired by investors in an aggregates business after 2014 will be entitled to only the regular 50 percent exclusion if not changed by lawmakers Recognizing S corporation built in gains A corporate level tax at the highest marginal rate currently 35 percent is imposed on an S corporations net recognized built in gain That built in gain is usually gain that arose prior to the sand gravel or crushed stone operations conversion from a regular C corporation to an S corporation and arises when assets are sold Under the new law an S corporations recognition period for built in gains tax is five years rather than 10 years Energy related tax savings The extension of the energy efficient commercial buildings deduction allows an above the Hindered Settling Classifers Belt Filter Presses Filter Presses Bucket Wheels Booth 1104 Thickeners 2402 Watterson Tr Louisville Kentucky 40299 p 5024996198 f 5024991079 phoenix@ dewater com www dewater com THE LATEST SCALES FOR WHEEL LOADERS EXCAVATORS WEIGHLOG VUE Easy to Use 7 Color Touchscreen Wheel Loader Scale and Reverse Camera See your accumulated loads target loads customer name material and more Save Load Data to SD Card USB Memory Wireless and WiFi Compatible Full Featured Scale for any Operation JOIN US AT BOOTH 1368 www loupelectronics com or call 877 489 5687 www pitandquarry com February 2015 PIT QUARRY 57