BUSINESS AND BUSINESS OWNER YEAR-END TAX-PLANNING STRATEGIES SHOULD BE REVIEWED IN NOVEMBER FOR 2015

BUSINESS AND BUSINESS OWNER YEAR-END TAX-PLANNING STRATEGIES SHOULD BE REVIEWED IN NOVEMBER FOR 2015

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by: Jeffrey M. Fetter



Although there is still no guidance from Congress on when or whether there is going to be Extender Legislation this year, you may want to be prepared in case Congress does bless us again with another round of temporary tax legislation that has been beneficial to the business community over the past few years. “Extenders” included 50% bonus depreciation for machinery, equipment, software, and other specified assets as well as a renewal of higher Section 179 limits for the same types of assets – – presently the Section 170 deduction is at $25,000 for the 2015 tax year (the same as it was in 2014 before being extended in the closing weeks of the year). Some of the Extenders may be enacted retroactively, but no guarantees exist as to whether there will be any Extender Legislation at all, whether it will be the same as 2014 or whether legislation will be a piece-meal basis.


Regardless of what, if any, new legislation we see, there are a few 2015 tax-saving strategies that may be of benefit to your businesses and possibly yourself as well. Conversations should take place early with your tax advisors. On the New York State front, ensure that you have your plan in place to take advantage of the Manufacturer’s Real Property Tax Credit of credits for applicable R&D. If you have started a new business here in New York State this year, check out the Start-Up New York website to see if there are any benefits available to you or your business operations at www.startup.ny.gov.


On the Federal side, any equipment or machinery purchased before year end still qualifies for the half-year convention for depreciation purposes and, if placed in service, may be eligible for any benefits that may come along from Bonus Depreciation or increased Section 170 deductions. Looking at whether income should be accelerated into 2015 or deferred into 2016 is always important. With many businesses this year, it may still be beneficial to pre-pay certain expenses in 2015 as well. But, with any planning that involves prepayments, keep in mind that deductions taken in 2015 are not available in 2016 – you need to determine the planning option that is more beneficial to you which may require using the Crystal Ball approach to planning (e.g., are you carrying NOLs that could be used against income this year if income was accelerated). 


Corporate AMT presents different challenges for those businesses that qualify for the small corporation AMT exemption. Although there is no benefit to accelerating income into 2015 for the small corporation AMT exemption, it may be worthwhile to review whether the deferral of income into 2016 could secure the exemption for 2015. Are purchase or sale of interest transactions warranted within an LLC or partnership business that could result in “new basis” for depreciation going forward? There are other benefits that may be applicable to your particular industry and the time to get the attention of your tax advisor may be in November, rather than December, so that proper planning strategies can be reviewed.


If you have any questions, or if we may be of any assistance in your year-end planning, please let us know. 

CLIENT ALERT: Protect Your Property from Deed Fraud in Florida

August 21, 2025
Stewart M. McGough, Esq. Deed fraud is increasing rapidly in Florida. Criminals have been forging property deeds to unlawfully transfer ownership and sell properties without the real owner's knowledge. Any property owner may be affected, including homeowners, and the legal costs to reverse this type of fraud can be substantial. To help combat this risk, Florida law now requires each county Clerk of Court to provide a Property Alert Service . This free service notifies you when a document such as a deed is filed under your name or your property's legal description. Steps You Should Take Register for Property Alerts Visit the official Florida Court Clerks website: https://www.flclerks.com/page/PropertyAlertServices Choose Your County (or Counties) Click the link for each county where you own property. Complete the online registration with your name and property information. Watch for Notifications If someone files a deed involving your property, you will receive an alert by email, text, or phone depending on the county. If the filing is legitimate, no action is needed. If it appears fraudulent, contact the Clerk immediately and consult an attorney to prevent the deed from being recorded. Why This Matters Deed fraud can occur silently and without warning. Registering for alerts gives you immediate notice so you can respond before the fraud is finalized and your property is illegally transferred.  Please take a few minutes to register today. This simple step can protect your property and avoid major legal complications.

Important Notice for New York State LLCs

August 8, 2024
By: Nicholas J. Graham, Esq. Limited Liability Companies ("LLC") have been authorized in New York since 1994. When the law was first enacted, an LLC could not have perpetual existence like corporations. This limitation was removed in 1997. If your LLC was established under the old New York State law that imposed a 30-year lifespan, it's crucial to be aware of the approaching expiration of your company's duration. Originally, LLCs in New York were required to specify a limited duration, commonly set at 30 years. Many of these companies are now reaching the end of this period and must take action to continue operating. Special attention should be given to LLC's formed between 1994 and 1997, as they were likely established with a 30-year lifespan. What Has Changed? The law in New York has evolved, and LLCs are no longer bound by the 30-year limit. Pursuant to NY LLC law §701(1), businesses now have the option to exist perpetually, providing greater flexibility and stability for long-term planning. However, this change is not automatic for existing LLCs that were originally set up with a 30-year term. What You Need to Do To ensure your LLC can continue its operations beyond the original 30-year term, you need to file an amended Articles of Organization with the New York Department of State. This amendment should update the duration of your LLC to perpetual, or to another term if desired. Steps to Amend Your Articles of Organization: Prepare the Amendment: Draft an amendment to your LLC's Articles of Organization. This document should clearly state the new duration of the LLC, typically set to "perpetual." File the Amendment: Submit the amended Articles of Organization to the New York Department of State. This can usually be done online or by mail. Ensure that you include the necessary filing fee. Update Internal Documents: Reflect the change in your LLC's operating agreement and any other internal documents to ensure consistency and compliance. Notify Members and Stakeholders: Inform all members and relevant stakeholders of the change to ensure everyone is aware of the updated status of the LLC. Why It Matters Failing to update your LLC’s duration could result in the automatic dissolution of the company once the original 30-year term expires. This could lead to significant disruptions in business operations and potential legal complications. By taking proactive steps to amend your Articles of Organization, you can ensure the continuity of your LLC and take advantage of the flexibility offered by the current laws. Need Assistance? The Scolaro Law Firm specializes in helping businesses navigate changes in regulatory requirements. If you need assistance with amending your Articles of Organization or have any questions regarding your LLC's status, please contact us. Our experienced team is here to provide the guidance and support you need to keep your business running smoothly. This article is intended to be for informational and discussion purposes only and is not to be construed as legal advice or as a legal opinion on which certain actions should or should not be taken.