With cold weather settling in, colorful lights shining bright and the crisp fresh smell of burning wood coming from the chimneys, it is safe to say the holiday season is upon us! With all the excitement in the air, it’s hard to believe anyone in their right mind would even think about taxes. Of course as CPAs, we are always looking for ways to save taxes no matter what time of year it is. Here are a few tax savvy holiday gifting ideas that can help you to give and save taxes at the same time.
Buying Gifts = Saving Money
This year be strategic in the way you shop. Use tax deductions to your advantage by considering a holiday gift idea that may also be tax deductible. For example, instead of buying a nice pair of slacks think about what your business needs are. For real estate investors, you might need an iPad because you are always on the go and need an organizational tool with internet capabilities. Think outside the box and you will be surprised with what you and your tax advisor can come up with!
If you are thinking about purchasing some bigger items for your business this year, consider using the 50% bonus depreciation. Using this savvy loophole could allow you the benefit of taking a 50% immediate tax write-off on items that would otherwise need to be written off over several years. Not bad for some new assets! Instead of having to depreciate the cost of the item over many years, you can take a 50% write-off immediately this year. The key is that this applies to brand new assets only.
For example, if you are thinking of buying a new car or truck for your business or investing, this may be the year to do it.
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