Top 4 Tax Planning Strategies For Small Business

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Top 4 Tax Planning Strategies For Small Business
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Introduction
Entrepreneurship is a one man show. The business
owner is responsible for all the different things
related to the business. Starting from handling
the employees, accounts to every single matter.
However, often the taxation becomes an issue for
the owner because of not having enough knowledge
regarding it. In case of not hiring a
professional tax preparer, the business owner
needs to know the basics of taxes. The current
presentation is all about the tax burden issues
and tax planning strategies.
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100 Bonus Depreciation For Asset Additions
The newly included Tax Cuts and Jobs Act, One can
avail 100 first-year bonus depreciation for the
new and used properties. It means that the entire
cost of some properties you added will be right
off completely. Therefore, you can consider new
property acquisition until the year-end. It is
better to contact a tax preparer who can guide
you about the 100 bonus depreciation breaks.
Further, you will be able to know about the types
of properties that qualify under this.
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Claim 100 Bonus Depreciation For Heavy SUV,
Pickup or Van
Heavy vehicles used for business over 50 come
under the first year depreciation deduction. It
is the reason behind using heavy vehicles like
SUVs, pickups and vans for business
transportation as these qualify for the 100
depreciation. To claim the 100 bonus
depreciation, the transport gross vehicle weight
rating (GVWR) must be higher than 6000pounds. Be
sure about it by looking at the GVWR level of the
vehicle. Therefore, if you are planning to buy a
vehicle, it is better to hire it soon to be
eligible for claiming the depreciation.
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179 Deduction Rules
TCJA raised the section 179deduction up to
1million. It included the property for lodging,
qualifying the actual properties etc. TCJA allows
the section 179 deduction for the use of the
personal properties to furnish or lodging
purpose. Therefore, now one can claim a deduction
of personal properties for commercial lodging.
Further, one can claim the deduction for the
improvement of the properties used for the
business just after the service.
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Defer The Taxable Income
Cash method is used for tax purposes in
most small businesses. Cash method accounting
allows a small business to minimize taxable
income. One can charge the recurring expenses
that are generally pain in the next financial
year. Further, the payments can be done by
cheques just before a few days of year ending.
However, because of the registered mail, you can
surely claim the tax deduction for the payments.
Applying these means altogether can save your
good amount of tax.
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Thank You
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