If you want to be prepared for tax season next year, now is the time to absorb all the information you’ll need and make a few changes.
Several of the enhanced deductions available to business owners and the self-employed have to do with the purchase and depreciation of assets. And currently, the IRS designates different categories of depreciation of assets: there is what we refer to as â€œregular depreciation,â€ there is â€œbonus depreciation,â€ and there is what is known as â€œSection 179 depreciation.â€ Business owners and the self-employed must allow for careful consideration and planning with their tax preparation professional, to determine which type of depreciation is appropriate for their circumstances.
Also, if you own or lease property and make upgrades or improvements on that property, under Section 179 Depreciation provisions the IRS will allow you to deduct up to $250,000, all within year 2011. Yet this is a one-year, one time policy from the IRS â€“ in 2012 the deduction will essentially go away.
Photo by Chris Tolworthy