As with individuals, tax reforms could potentially affect your small business, but the prospects are still uncertain.
Strategy: Take advantage of current loopholes in the tax law. By making smart moves at the end of the year, you might save your business thousands of tax dollars.
Following are seven tax strategies that may work out for your situation.
1. Max out on. Under Section 179 of the tax code, a business can currently 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 (PATH) Act permanently preserved a maximum $500,000 allowance, subject to inflation indexing. But the deduction is limited to your taxable business income and reduced dollar-for-dollar for acquisitions above a $2 million threshold, also indexed for inflation.
Tip: The maximum allowance for 2017 is $510,000, and the threshold ...(register to read more)