U.S. Representatives Pat Tiberi (R-Ohio) and Ron Kind (D-Wis.) reintroduced a bill this week that would allow small business owners to deduct up to $500,000 in office equipment, property, and computer software. While these levels were retroactively extended in 2014, the deduction limit has dropped to $25,000 of qualifying property this year.
If passed, the legislation would provide some relief for advisors going out on their own and starting their own practices.
In a letter to Congress, the Financial Services Institute voiced its support for the bill, H.R. 636, and its potential benefits to independent advisors.
“These are businesses that are strongly in need of these improvements, and without the security provided by H.R. 636, they might choose to not improve their office equipment because they fear that the tax rules that have been in place since the 1950s will no longer apply,” the advocacy group writes. “This lack of action due to the uncertainty caused by the currently-expired tax rules for small business write-offs will keep many small businesses from further growing our nation’s economy, thus necessitating the changes contained in H.R. 636.”