Taxmas

Maximizing your tax strategy.

Expanding/Upgrading Your Business In 2024?

Planning to expand your business and/or buy new furnishings for your facility? Good news: IRS Section 179 will permit the immediate depreciation and expense of certain business equipment, up to $2 million in total. So, if you’ll need tables and chairs for next year — buy them before December 31 — and lower your 2024 tax liability!

Do You Have A Strategy FOR Employee Payouts?

If you’re a small business, you should consider paying employee bonuses in December and not in January. For individuals, make sure itemized deductions, such as real estate taxes, are paid in calendar year 2024.

Tax Credits

Some business purchases may qualify for tax credits. Research available tax credits in your jurisdiction related to specific purchases, such as energy-efficient equipment, electric vehicles or research and development activities.

Timing Considerations

Making a purchase before the end of the year allows you to take advantage of available tax benefits sooner rather than later. Consideration of the timing of large purchases can help optimize your tax strategy.

Financing Your Purchase

For many business owners, the bulk of their equipment purchases will likely qualify for Section 179. However, because the deduction applies to purchases made in the same year, it can be a challenge to make those purchases without having enough cash on hand. The good news is that Section 179 treats purchases the same whether they’re fully paid for, financed, or leased. Whether you pay upfront or spread the payments over time, you can still claim the deduction.