The Four Top Tax Strategies to Save You Money
Here are four tax strategies that can help you save money:
- Use your startup costs as a deduction: The IRS provides a tax break by allowing you to deduct up to $5,000 of your initial startup costs. This allows you to reduce your taxable income.
- Use special depreciation rules to take larger deductions: Deduct a large amount in the year of purchase and use a special deprecation allowance. This allows you to take 50 percent of the cost of the item as a deduction in the year of purchase. This also applies to almost all tangible property.
- Contribute to a retirement account: Saving for the future by contributing into a IRA allows you to be $5,550 tax free for the year.
- Deduct some of your household expenses if you have a home office: A home office need to have space that is exclusively and regularly used for conducting business. Common home office expenses that may be deducted include mortgage interest, insurance, utilities, repairs and depreciation.
There are numerous tax-saving strategies and deductions that can be utilized by small businesses depending on each situation.