1. 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.
2. The spending cap on equipment purchases under Section 179 for 2023 is $2,890,000, and the deduction begins to phase out above that amount.
3. Businesses can defer income to the next tax year and reduce their adjusted gross income for the current year by delaying receiving payment until January for invoices sent out in December, or prepaying bills due in January to take the deduction for this tax year. – There are several retirement plan options to choose from, including SIMPLE IRAs, profit-sharing, and safe harbor 401(k)s. A qualified plan offers a deduction for contributions and tax deferral on earnings.
– LLC owners can choose their tax structure and may elect to be taxed as a C corporation or S corporation by filing IRS Form 2553.
– Vehicle expenses for business use can be deducted by taking the standard mileage reimbursement rate or calculating actual expenses. Keep accurate mileage logs and receipts to claim deductions.
https://www.raymondjames.com/commentary-and-insights/business-ownership/2023/10/10/year-end-tax-tips-for-businesses
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