Year-End Tax Tips for the Small Business Owner
Look Ahead, Plan Now
With changes in the tax code looming, taking full advantage of any deductions that remain for 2017 is crucial. Here are a few tax tips that you should be acting on before the end of the year as a small business owner:
- Get your books organized: To be able to maximize your write-offs, it helps to know where you stand. Organizing your books now and sitting down with a tax expert can help you build a strategy for the rest of the year. It can also ensure that you are doing everything right, which reduces your risk of being audited.
- Make capital expenditures: Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight December 31, 2017. 50% Bonus Depreciation has been extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.
- Contribute to a charity: Not only is making a charitable contribution from your small business a great thing to do during the holiday season, but it can also be a good idea for your business finances. And you don’t have to donate money. You can also donate items such as clothing, toys and other goods, and claim a deduction for the fair market value. Just be sure to get proper documentation and a receipt for your records.