Tax Strategies

So you have paid your business expenses for the year. You have signed, sealed and delivered your check to the Internal Revenue Service. Now what are you going to do with all the after-tax dollars. Smart business owners make the most of it! They know that maximizing after-tax dollars means they are taking advantage of every tax-reducing strategy.

Tax Strategies to Consider

What’s the secret to reducing taxes? Advanced tax planning. In order to make the most of your money, it’s important you know your options.

Claim Section 179: This section covers depreciation. Depreciation is a write-off of capital purchase over the life of your equipment. Depending on the item, depreciation is written off in five for seven years, depending on the type of equipment. Section 179 allows you to write off $105,000 of capital purchases every year.

Make the Most of Tax-Deferred Retirement: Whatever your retirement plan, IRA, Roth IRA, SEP, SIMPLE, Keogh or 401(k)s - make sure you add the maximum amount to it every year.

Combine Pleasure and Business: Next time you plan a vacation, think about devoting a little bit of your pleasure time to business. If more of your vacation is business-orientated, you can deduct costs (plane, rental car, etc.).

Hire Your Kids: Put your kids to work and pay them $4,580 a piece and reduce your taxable amount by that much too. Your kids will pay not taxes because their income is below the single exemption allowance.

See What Other Expenses You Can Claim: Have you bought any books, magazine subscriptions or paper products? Do you use the Internet? Do you have a cell phone that you primarily use for work? These are all common deductions available to you.

Create a Home Office: Gone are the days a home office was a red flag for the IRS. Now a home office has become pretty much accepted. This is in large part due to the increase in telecommuting. If you use 15 percent of your home’s square footage, you can deduct 15 percent of mortgage interest, property taxes, insurance, repairs, maintenance and depreciation.

Through a combined effort of dedicated employees, lending partners and affordable financing, Simplified Leasing offers unparalleled opportunities for your company's vast equipment leasing needs. Thinking about leasing equipment for your business? For complete information on how leasing can benefit your specific business situation, Contact us today!