Bonus depreciation is back and better than ever. Now the IRS has issued a new ruling on this revived tax break. The new IRS guidance provides certain options, including a downward election, plus coordination with other tax code sections and creates an “escape hatch” for business vehicle owners who might face unfavorable tax results under the new rules.
Small Business Tax Deduction Strategies
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
You may not be able to qualify for the full home sale exclusion ($250,000 singles; $500,000 for married joint-filing couples) when you sell your principal residence. However, if you can’t get the whole loaf of bread, at least you might be able to get a slice of it. Strategy: Claim a partial home sale exclusion on your personal tax return.
Have you heard about the Houston Astros fan who was taxed on the doughnut coupons he won as a prize? There’s a valuable tax lesson to be learned from it. Strategy: Simply turn down prizes and awards you don’t want. They may constitute taxable income whether you use the item or not.
It usually takes a long time—39 years, to be exact—to recoup the full cost of a business building through depreciation deductions. But there’s a way to secure faster tax benefits. Strategy: Separate building components for tax purposes. As long as you meet certain requirements, you may write off the cost of some building components in only five or seven years.