End of Year Business Tax Planning Tip
In 2018, a taxpayer may expense up to one million dollars of section 179 property.
What is Section 179 Property?
It includes computers, machinery, improvements to nonresidential real property such as roofs, HVAC, and alarm systems.
Cars are included, but beware, the cost of any sports utility vehicle is limited to $25,000 .
In a nutshell:
You can take the full expense as a deduction from taxable income in 2018 instead of capitalizing the costs over a longer period of time. So if your business needs new computers, vehicles, equipment, or office improvements, a purchase before year end may save on your tax liability!