Though tax season is rapidly approaching it is not too late to take advantage of business deductions. So, we hope you find this information useful.
Get Up To $500,000 In Tax Deductions
First we want to make you fully aware of the Section 179 deduction and how it can benefit businesses like yours. In 2013, Section 179 allows businesses to deduct the full purchase price of equipment of up to $500,000. This is good on new and used equipment, as well as off-the-shelf software. The deduction limit has decreased in each of the last several years, but Congress took action this year and reversed that trend. However, this amount is scheduled to decrease to $25,000 in 2014.
Also, the first-year bonus depreciation, which applies to new business equipment, has been set at 50 percent through 2013, and will drop to zero percent starting January 1, 2014. The current cap on total capital equipment purchases is $2,000,000 and will decrease to $200,000 in 2014. Many types of property qualify under the Section 179 tax code provision. This includes technology, machinery, computers, vehicles and office equipment.
Section 179 Resources
Tend To Your Retirement Account
Whether you have a 401(k), Roth IRA, SEP, or KEOGH plan, this is a good time to contribute to your retirement account – or establish one if you haven’t yet. Your accountant will have good advice on deciding how much to contribute (in terms of yearly limits and what works best for your business), but however much it is, you have that much less taxable income for the year.
If there is any one part of small business that sends many business owners running for the hills, it’s taxes. If you make a misstep in this area, it can really end up costing you. There is a lot to consider in the world of taxes. So our advice: Find a deduction guide, and if you really want to cover your bases, contact a trusted tax expert. If you do not already have a trusted tax expert we use and recommend Brian Hill the owner of BCH Consulting in Irvine who said this in a recent interview “Congress is great at providing tax incentives that are difficult or even impossible to use. Asset depreciation incentives are the one incentive that can benefit every business with a positive bottom line.”. He can be reached by phone (949) 954-8133 or email firstname.lastname@example.org.