5 Best Year End Tax Saving Tips for Small Business Owners

Have you not done your year-end tax planning yet? It's not too late to work on your 2015 business income tax bill! You can still take advantage of year-end tax planning to save on your business taxes.

Here are five ways to help your business save on taxes:

  1. Use Heavy Transportation You can claim a current-year tax deduction for up to $25,000 of the cost of an SUV that is placed in service within 2015. Section 179 now provides you with an instant depreciation write-off. You can make additional deductions based on the cost of the vehicle over the next six years. To qualify for this deduction, you need to have purchased a vehicle that weighs at least 6,000 pounds.

  2. Tax Saving Tips for Small Business Owners
  3. Defer Taxes Small businesses can use cash-method accounting for taxes. This technique will help you micro-manage your 2015 and 2016 business taxable income, keeping taxes as low as possible. You may defer certain taxes until 2016, even for purchases made in 2015 and charged the following year.

  4. Document Expenses By sending checks through registered or certified mail, you can document expenses for write-offs this year. You can defer taxes on income from 2015-16 if you do not collect the money until after the New Year.

  5. Bonus Depreciation Your business may qualify for bonus depreciation for new equipment and software in addition to the Section 179 deduction. This deduction is available for the depreciation of computer systems, software, and other big ticket items in which the costs exceeded write-off privileges for Section 179. At the moment, however, bonus depreciation tax is not included for assets placed in service in 2015, unless Congress elects to restore this deduction.

  6. R&D Expenses Congress usually votes to extend tax credits for research and development. You need to stay up-to-date with tax news at the end of the year, which is when Congress usually makes its moves on extenders.

See Also: 5 New Year’s Resolutions for Getting out of Debt

Keating and Lyden

Keating & Lyden LLC was founded by attorneys-at-law, Robert J. Keating, and Thomas P. Lyden and is based in Boulder, Colorado, and Bellingham, Washington. The attorneys specialize in providing legal advice in real estate matters to businesses and individuals pertaining to real estate management and operation including: tenancy in common agreements, partition agreements, real estate financing, homeowner’s associations and land use issues. They also provide the highest quality legal services to small business owners and entrepreneurs.

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