Facebook Linkedin Twitter

Depreciation

New COVID-19 law makes favorable changes to “qualified improvement property”

(CARES ACT), Business Deductions, Business Income Tax, Coronavirus Aid (CARES Act), Deductions, Depreciation, Internal Revenue Service (IRS), Qualified Improvement Property (QIP) /

The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred to as qualified improvement property (QIP). You may recall that under the Tax Cuts and Jobs Act (TCJA), any QIP placed in service after December […]

New COVID-19 law makes favorable changes to “qualified improvement property” Read More »

2 valuable year-end tax-saving tools for your business

Business Deductions, Business Equipment, Business Income Tax, Depreciation, Depreciation Deduction (Section 179), Section 179, Tax, Tax Deduction, Tax Planning /

At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or

2 valuable year-end tax-saving tools for your business Read More »

Accelerate depreciation deductions with a cost segregation study

Cost Segregation Study, Depreciation, Depreciation Deduction (Section 179), Tax Cuts and Job Acts (TCJA) /

Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of a

Accelerate depreciation deductions with a cost segregation study Read More »

How to treat your business website costs for tax purposes

Depreciation, Depreciation Deduction (Section 179), Federal Income Tax, Small Business, Tax Deduction, Website Development Tax Deductions /

These days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy. That’s because the IRS hasn’t released any official guidance on these costs yet. Consequently, you must apply

How to treat your business website costs for tax purposes Read More »

It’s a good time to buy business equipment and other depreciable property

2019 Tax Return, Business Deductions, Business Equipment, Deductable Expenses, Deductions, Depreciation, Depreciation Deduction (Section 179), Equipment, Income Tax, Section 179, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning /

There’s good news about the Section 179 depreciation deduction for business property. The election has long provided a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time. And it was increased and expanded by the Tax Cuts and Jobs Act (TCJA). Even better, the

It’s a good time to buy business equipment and other depreciable property Read More »

M&A transactions: Avoid surprises from the IRS

Depreciation, Federal Income Tax, Form 8594, Income Tax, Internal Revenue Service, Merger & Acquisition, Small Business, Tax, Tax Planning /

If you’re considering buying or selling a business — or you’re in the process of a merger or acquisition — it’s important that both parties report the transaction to the IRS in the same way. Otherwise, you may increase your chances of being audited. If a sale involves business assets (as opposed to stock or

M&A transactions: Avoid surprises from the IRS Read More »

The home office deduction: Actual expenses vs. the simplified method

2018 Tax Return, Actual Expenses Method, Business Income Tax, Deductable Expenses, Deductions, Depreciation, Home Office Deduction, Income Tax, Small Business, Tax, Tax Deduction /

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. Thanks to a tax law change back in 2013, there are now two methods for

The home office deduction: Actual expenses vs. the simplified method Read More »

Depreciation-related breaks on business real estate: What you need to know when you file your 2018 return

2018 Tax Return, Deductions, Depreciation, Income Tax, Small Business, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings /

Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But special tax breaks that allow deductions to be taken more quickly are available for certain real estate investments. Some of these were enhanced by

Depreciation-related breaks on business real estate: What you need to know when you file your 2018 return Read More »

6 last-minute tax moves for your business

Business Income Tax, Deductable Expenses, Depreciation, Donations, Income Tax, Internal Revenue Service, Investment, Past-Through Entities, Retirement, Small Business, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings /

Tax planning is a year-round activity, but there are still some year-end strategies you can use to lower your 2018 tax bill. Here are six last-minute tax moves business owners should consider: Postpone invoices. If your business uses the cash method of accounting, and it would benefit from deferring income to next year, wait until

6 last-minute tax moves for your business Read More »

Could a cost segregation study help you accelerate depreciation deductions?

Cost Segregation Study, Depreciation, Internal Revenue Service, Small Business, Tax, Tax Cuts and Job Acts (TCJA) /

Businesses that acquire, construct or substantially improve a building — or did so in previous years — should consider a cost segregation study. It may allow you to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. And the potential benefits are now even greater due to enhancements to certain depreciation-related breaks under the

Could a cost segregation study help you accelerate depreciation deductions? Read More »