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Small-business owners need to make these tax moves now
Source:
marketwatch.com
- Nov 11, 2016
You still have time to significantly reduce your 2016 business income tax bill. Here’s a digest of the best year-end tax-saving moves to consider.
Buy a heavy SUV, pickup or van
Big SUVs, pickups, and vans are useful for hauling people and stuff around in your business, and they also offer major federal income tax advantages.
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Thanks to the Section 179 instant depreciation deduction privilege, you can probably claim a current-year write-off for up to $25,000 of the cost of a new or used heavy SUV that is put to business use before the end of the tax year.
After claiming the Section 179 deduction, you can claim 50% first-year bonus depreciation for a new (not used) vehicle that is put to business use by Dec. 31, 2016.
Finally, you can follow the “regular” tax depreciation rules to write off whatever is left of the business portion of the heavy vehicle’s cost over six years, starting with this year.
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Category: General Business
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