Top 3 End Of Year Tax Tips For 2014

by Thursday, December 11, 2014

5question_TaxReturn_crop_t640If you be going to buy assets tools sometime soon, pay notice. The rules for deducting certain business operating expense could modify over the next few weeks.

It’s the end of the year, which means time has all but run out to make momentous changes to your tax allocation. In a current interview with Inc., Lentine cited three tax topics that small business owners should keep in mind heading into 2015:

  1. Section 179 depreciation. You’re almost certainly familiar with the concept of depreciation: In plain English, it means that you’re dispersal deductions for your investments in business apparatus over a period of more than a few years (as opposed to taking a one-time deduction in the year you make the purchase).

“When the economic crisis occurred, the thinking was that we need an additional benefit to encourage people to spend,” says Lentine. “And that with that higher threshold, businesses would buy more significant equipment.”

  1. The IC-DISC tax advantage. If exports are a big element of your business, the IC-DISC is something you be supposed to look into for next year. First, you have to do the legwork of setting up an IC-DISC. Your company’s shareholders, now the owners of the IC-DISC, pay commissions to the IC-DISC.

A company that honestly exports goods it manufactures. Zerbe points out that “what counts as a manufactured superior is also broader than many people realize–it can embrace software, films, and many agricultural products.”

  1. Midyear reviews. Lentine suggests meeting with your tax professionals in the center of the year–not just at the end of it.

In other words, smooth if the heavier-hitting tax tips in this story–Section 179 and the IC-DISC–don’t apply to your business, the extremely least you can do for next year is make your mind up to frequently evidence your expenses.

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