Three Tax Strategies Small Businesses Can Do Now

The Wall Street Journal:

Attention, small-business owners: it’s not too late to make some smart moves and slash your business’ 2009 taxes. To start with, some soon-to-expire tax breaks are too good to ignore if your operation is healthy enough to need and be able to pay for equipment and software. And there’s more. Here’s my list of the best year-end tax-saving moves.

1. Buy a Heavy SUV – While buying a big SUV may not be politically correct, the fact is these vehicles are very useful if you need to haul people and stuff around. They also have a big tax advantage for businesses.

2. Buy Other Equipment, Software and Vehicles – There’s a much larger first-year Section 179 depreciation deduction for things that are not SUVs. The write-off — a whopping $250,000 — is available for the cost of most new and used items of business equipment and software.

3. Take Advantage of 50% First-Year Bonus Depreciation – Your business can also claim 50% first-year bonus depreciation for qualifying new (not used) equipment and software placed in service by December 31, 2009.

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