– Businesses can take advantage of Section 179 of the IRS tax code to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, up to $1,160,000.
– The 2023 spending cap on equipment purchases is $2,890,000, and the deduction begins to phase out on a dollar-for-dollar basis above that amount.
– Businesses can defer income to the next tax year and accelerate deductions by delaying receiving payment for invoices until January and prepaying some bills due in January to take the deduction for the current tax year. – Consider redesigning the company retirement plan to ensure it still fits the business’s needs, and explore options like SIMPLE IRAs, profit-sharing, and safe harbor 401(k)s.
– Discuss the business structure with a tax professional to see if there are more tax-efficient options available.
– Deduct vehicle expenses by utilizing the standard mileage reimbursement rate or calculating actual expenses, while keeping accurate records and receipts.
https://www.raymondjames.com/commentary-and-insights/tax-planning/2023/10/10/year-end-tax-tips-for-businesses
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