Even though David Letterman has retired from late night TV, there’s still a top 10 list for small business owners to applaud.
Strategy: Scan this list of 10 popular year-end tax ideas for small businesses. Use the ones that fit your situation.
1. Taketo the max. For property placed in service in 2015, the maximum for qualified business property is currently only $25,000, down from $500,000 in 2014. The deduction is reduced dollar-for-dollar for purchases above $200,000, reduced from a $2 million threshold in 2014. Absent any quick-strike law change by Congress, maximize the Section 179 allowance. Then wait to see whether you’ll have more flexibility along with bonus depreciation (see box below).
Tip: In any event, your Section 179 deduction can’t exceed the income from your business activities.
2. Dodge last-quarter tax trap. If you exceed the Section 179 allowance, remaining amounts can ...(register to read more)