Don’t think thatis just for large corporations.
Strategy: Make tax moves at year-end that can benefit your small business. In fact, because you call the shots, you may have more leeway than bigger operations.
Following are seven prime opportunities for tax savings in 2016.
1. Capturebenefits. Under Section 179 of the tax code, a business can potentially deduct, or “expense,” the cost of qualified new or used property placed in service during the year, up to a stated limit. The Protecting Americans from Tax Hikes Act (PATH Act) extends this tax break, retroactive to 2015, and permanently preserves a maximum annual deduction allowance of $500,000 (subject to inflation indexing). But the deduction is limited to your taxable business income and reduced dollar-for-dollar for purchases above $2 million (indexed to $2.01 million for 2016).
Tip: Your business might file an amended return to incre...(register to read more)