If you’re a small-business owner, there are a few tax planning strategies you can implement at the end of the year to save money. Here are just a few:
• Claim 100% bonus depreciation for asset additions – If you have new or used property, you may be eligible for a first-year bonus depreciation. In other words, you may be eligible to write off some of your 2019 asset additions. The same rule may also be applicable for heavy SUV, pickup, or van purchases.
• Time your business income for tax savings – If you conduct your business using a pass-through entity, your share of your business’s income is passed through to you. This means that deferring income into next year makes sense if you expect to be in the same or lower tax bracket next year. The qualified business income from pass-through entities deduction can also help because deductions can be up to 20% of a pass-through entity owner’s qualified business income.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from Market Watch