If you own a small business operating on a calendar-year basis, now is the time to cash in on tax-saving opportunities while avoiding potential pitfalls.
Strategy: Map out a plan for year-end. But don’t write it in stone; you may have to shift gears quickly if Congress passes new legislation.
Here are 11 top techniques you might put in action.
1. Wait-and-see on. For property placed in service in 2014, the maximum Section 179 for qualified business property is currently only $25,000, down from a high point of $500,000 in 2013. Also, the deduction is reduced dollar-for-dollar for purchases above $200,000, down from a $2 million threshold. Absent any imminent tax law change, maximize the Section 179 allowance and hold off on other elective purchases until its ultimate fate, along with bonus depreciation (see below), becomes clear.
Tip: In any event, your (register to read more)can’t exceed the income from your b...