When it comes to owning a small business, there are many ways to maximize tax deductions to minimize tax liability. One of the biggest advantages for small businesses is Bonus Depreciation and the Section 179 tax deduction. This tax break is intended to allow small businesses to depreciate property and equipment more quickly.
With Bonus Depreciation and Section 179, business owners can take the entire deduction of their property or equipment within one year, instead of spreading it out over several years. This allows for the potential reduction of your tax liability and it eliminates having to wait several years to receive the tax benefits from purchasing equipment.
Bonus Depreciation and Section 179 deductions are allowed for tangible personal property for your business, such as computers, office furniture, machinery, businesses vehicles, and software, that will last for more than one year. You can also apply this deduction to any property that was purchased from another party. When taking advantage of this tax break, many small businesses will be able to more easily afford to buy more business equipment. These tax breaks can aid in helping your business grow and expand.