3 big write-offs on Form 4562 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

3 big write-offs on Form 4562

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in Small Business Tax,Small Business Tax Deduction Strategies

Business owners and real estate owners may claim the following three generous deductions for 2013 on Form 4562, Depreciation and Amortization.

  1. A business can claim a maximum Section 179 deduction of $500,000 with a phaseout threshold of $2 million. The deduction is claimed in Part I, Election to Expense Certain Property Under Section 179.
  2. A real estate owner can write off up to $250,000 of qualified real property, including qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property.
  3. A business can deduct 50% bonus depreciation for qualified new (not used) property placed in service in 2013. The deduction is claimed in Part II, Special Depreciation Allowance and Other Depreciation.

Tip: These tax breaks have not yet been extended beyond 2013.

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