7 End-of-Year Tax Tips You May Have Forgotten About
The end of the year is here, and that means tax-season. Things can be pretty stressful if you are a small business owner, and tax research probably isn’t at the top of your to-do list, but it’s definitely something that is worth your time. Tax reform looks as if it will come into law in 2018, so you’ll need to stay up to date or face being chased by the IRS. Here are 7 tax deductions and credit you might not have thought of.
1. Take Advantage of the Section 179 Deduction
The Section 179 deduction was created with small business owners and entrepreneurs in mind. For 2017, certain property can be expensed in full up to the value of $500,000. If you use a physical location for your business or for research purposes, property for transportation, or expensive computer software, this tax deduction might apply to you.
2. Don’t Wait on Charitable Contributions
As rewarding as giving to charity is, it can also help come tax time as you’ll get a deduction. It’s always to donate cash, but if donate property, like stock shares you can claim a deduction for the fair market value instead of the price you paid. Just make sure you get a second opinion from your CPA or tax profession to check your calculations and eligibility.
3. Be Careful About Deducting Meals and Travel
Deducting business travel isn’t a new idea, but be careful not to get tripped up. You will need proper documentation to provide evidence if you want to claim business deductions. Business travel is usually deducted at 100%, while food and entertainment will only be deducted at 50%.
