Sunday, December 16, 2007

Start tax planning to find breaks

Year-end tax planning isn't just about making sure that you write a check to a soup kitchen before Dec. 31 to get a deduction for a charitable contribution for 2007.

For businesses, it's also a time to review complex tax rules and strategies. Here's a look at some potential tax breaks:
  • Small businesses can find a tax break in the Section 179 Deduction.
This tax break has gotten bigger in recent years, so more sole proprietors, partnerships and corporations may want to review Internal Revenue Code Section 179 to write off capital expenditures immediately in the year the item is bought.

Bob D. Scharin, RIA senior tax analyst from Thomson Tax & Accounting, noted that business owners must take delivery of the equipment and place it in service by year's end to take the deduction for 2007.

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1 comment:

crestcap said...

Small businesses should definitely be planning for year-end taxes prior to Dec 31st. One great option mentioned to reduce taxes is Section 179. A simple calculator you can use to determine tax savings on various $amounts is a great place to start. If you don’t have cash available to add equipment, furniture, etc, certain leases and loan structures qualify for the Section 179 expensing allowance.

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