The New Small-Business Loophole You Can Drive a Truck Through

Loophole Arrow Crashing Through Maze Avoid Paying Taxes CheatingCapitalize or expense? New IRS 'de minimus' rule opens the floodgates.

By Bradley Burnett
Tax Practice

The issue is as old as the hills in the federal tax law. At least more than a hundred years old and that’s longer than most of us have been around. Old as old can be, and yet the latest version of the issue packs about as much sizzle and punch as you can get. Step right up and get your tickets here. Wait, you don’t have to buy a ticket from anyone. You can put on your own show right here, right now and, for that matter, most anytime you like.

Catch Bradley Burnett's upcoming webinar, "2016 Federal Tax Update for Closely Held Businesses," June 21, 2016, 1-2:40 pm ET 

What are we talking about? Most taxpayers want to write off expenditures right now. On this year’s tax return. IRS wants to slow tax write-offs down – to deny a current deduction and make the taxpayer delay by forcing the spread of deductions over time. It’s like a Tom and Jerry cartoon. It’s one of the oldest shows on the books. And, it’s the same story over and over and over and over.

That’s what makes IRS’ latest move in the saga so surprising. It’s like now the scriptwriter lets the cat blow the mouse to smithereens over and over and over and over. The cat finally outsmarts the mouse, or something like that. And, it is the mouse who authored it all.    READ MORE →