Fay Jamasbi, CPA

Bonus Depreciation vs. Section 179 There is one key difference between the two and that is Section 179 allows a business to expense the cost of the qualified property immediately, while depreciation allows a business to recover that cost over time. In other words, the Section 179 deduction is taken (unless the business has no taxable profit) first to reduce the cost of the qualified property that was purchased, then bonus depreciation is taken after to decrease the remaining ...cost of the property over its useful life. Businesses that go over the spending limit for Section 179 can still benefit from taking bonus depreciation. As of January 1, 2018, businesses can deduct up to $1 million of qualified property (up from $520,000 in previous years) immediately, with a phase-out threshold of $2.5 million. Unlike bonus depreciation, Section 179 is limited to the taxpayer’s business income. Passive income, such as assets used in rental property, is not eligible for the deduction. Also, bonus depreciation can push the taxpayer into a net operating loss, but Section 179 cannot. For more information. For more information please contact our offices @fayjamasbicpa.com #bonusdepreciation #section179 #depreciationfortaxpurposes #qualifiedpropertiesfordepreciation #limitsonsection179

Social Security tax Depending on your total income, up to 85% of Social Security benefits may be taxable. If you’re a single filer and your combined incomethat is, adjusted gross income, nontaxable interest from municipal bonds, and half of your Social Security benefitsis more than $25,000, you will have to pay taxes. If you’re married and file jointly, the threshold is $32,000. #socialsecurityincome... #socialsecuritybenefits #agi See more

Employee Healthcare As an employer with employees, you may have certain healthcare requirements you need to comply with as well. If so, you should know about the Small Business Health Care Tax Credit, which helps small businesses (fewer than 25 employees who work full-time, or a combination of full-time and part-time) pay for health care coverage they offer their employees. The maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiu...ms paid for small tax-exempt employers, such as charities. It is available to eligible employers for two consecutive taxable years. For more information, contact our office at fayjamasbicpa.com #employers #healthcare #employeehealthcare #employeebenefits #smallbusiness

Annuity Income Annuities are retirement income products sold by insurance companies. They include lifetime annuities that pay you an income for life and will pay a nominated beneficiary an income for life after you die if you choose this option. Fixed-term annuities pay an income for a set period, and then a ‘maturity amount’ at the end that you can use to buy another retirement income product. When you use money from your pension pot to buy an annuity you can take up to 25% ...of the amount as tax-free cash. For more information, please contact our offices @ fayjamasbicpa.com #annuity #annuityincome #lifetimeannuities #fixedtermannuities #pensions

Proposition 19 In California, parents or grandparents can transfer primary residential properties to their children or grandchildren without the property's tax assessment resetting to market value. Other types of properties, such as vacation homes and business properties, can also be transferred from parent to child or grandparent to grandchild with the first $1 million exempts from re-assessment when transferred.[1] The ballot measure would eliminate the parent-to-child and ...grandparent-to-grandchild exemption in cases where the child or grandchild does not use the inherited property as their principal residences, such as using a property a rental house, or a second home. When the inherited property is used as the recipient's principal residence but is sold for $1 million more than the property's taxable value, an upward adjustment in assessed value would occur. The ballot measure would also apply these rules to certain farms. For more information, please contact our offices @ fayjamasbicpa.com #prop19 #proposition19 #realpropertytransfer #inheritedproperty #principalresidence