Business Tax Help 2017: Business Property and Depreciation

Business Tax Help 2017

The goal for doing taxes for your business is simple; maximize your tax benefits to minimize the amount of taxes you have to pay. But with tax laws always changing, how can you ensure that your tax plan is still the best option?

That is why we here at Sonny and Company CPA will be keeping you up to date with some new tax tips and strategies that may help your business save money on taxes.

Business Property and Depreciation

Whether it is a new computer or a new forklift, business property helps you business operate but can also help you save on your business taxes

The introduction of bonus depreciation has helped many business owners deduct a larger percentage of the depreciation expense of their business property. Businesses are allowed to buy new property and in that first year of putting it into use are given a 50% bonus depreciation. This type of deduction is very helpful because it is an extra expense that is allowed to be taken without having to spend any money.

However, some companies prefer or can only afford to buy second hand property. For these cases, they are not allowed to take the bonus depreciation offer because it only applies to brand new, first time use property.

Luckily, these types of businesses can choose to elect Code Sec. 179 expensing. This tax code allows the taxpayer to deduct costs related to property and be expensed instead of marking it as an asset with depreciation. This code applies not only brand new property, but secondhand property as well. These deductions are allowed up to $500,00, which is double the amount from last year.

To check which one would be best for your business, give us a call at (714) 533-2600 to schedule a FREE consultation to make sure you are getting every deduction you deserve.

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