Central Turf & Irrigation Supply

News

Year-End Tax Planning for Contractors

Looking for ways to reduce Uncle Sam's share of your 2016 profits?

Ask your tax professional about these smart strategies that could reduce your tax bite.

Maximize your Section 179 deduction by purchasing new equipment NOW. This is a huge boost to small and medium businesses who wisely invest profits into new equipment. You can deduct 100% of the cost of the equipment you purchase in the current year rather than depreciating it over time. Purchasing a $25,000 machine instantly reduces your taxable income and tax burden. Hurry, you must take delivery of the equipment before year-end.

Make energy efficiency upgrades to your buildings (Section 179D). Current rules allow immediate expensing (versus depreciation) for qualifying energy-efficient upgrades. Save money on taxes and on heating/cooling bills.

Time income and expenses at year-end. Make wise decisions on timing of revenues and expenses at year end based on your financial situation. Deferring either income or expenses into the next tax year may be possible and helpful in certain businesses. Be sure to ask your accountant or tax expert which apply in your situation.