Year-end reminders for your business taxes
Tax Tip of the Week
December 29, 2014
Year-end reminders for your business taxes
Here's your business slogan for December: Buy-Give-Start. As the year winds down, those three words summarize tax-planning actions you can take to save money on your 2014 business taxes.
- Buy. Equipment you purchase and place in service before December 31 is eligible for a deduction called Section 179 expensing. Section 179 lets you write off the full cost of qualifying assets in the year of purchase, even if your in-service date is December 31. For 2014, you can expense up to $500,000 of assets you buy during the year.
- Give. Make contributions to qualified charities. The rules are generally the same as for individuals, though exceptions exist, such as a special deduction for inventory you donate from your "C" corporation. Contributions may be deductible on your personal tax return, depending on the form of your business.
- Start. Establish a retirement plan. Tax benefits include deductible contributions, tax-deferred growth, and the potential for a federal income tax credit to offset start-up costs. Examples of plans you can set up by year-end include a solo or group 401(k), a simplified employee pension plan (known as a SEP), or a profit sharing plan.
Give us a call for more year-end tax saving suggestions.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
© MC 2014
December 29, 2014
Year-end reminders for your business taxes
Here's your business slogan for December: Buy-Give-Start. As the year winds down, those three words summarize tax-planning actions you can take to save money on your 2014 business taxes.
- Buy. Equipment you purchase and place in service before December 31 is eligible for a deduction called Section 179 expensing. Section 179 lets you write off the full cost of qualifying assets in the year of purchase, even if your in-service date is December 31. For 2014, you can expense up to $500,000 of assets you buy during the year.
- Give. Make contributions to qualified charities. The rules are generally the same as for individuals, though exceptions exist, such as a special deduction for inventory you donate from your "C" corporation. Contributions may be deductible on your personal tax return, depending on the form of your business.
- Start. Establish a retirement plan. Tax benefits include deductible contributions, tax-deferred growth, and the potential for a federal income tax credit to offset start-up costs. Examples of plans you can set up by year-end include a solo or group 401(k), a simplified employee pension plan (known as a SEP), or a profit sharing plan.
Give us a call for more year-end tax saving suggestions.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
© MC 2014
