A Few Ways to Reduce Your 2008 Tax Bill: Buy, Be Green and Patriotic
It's the end of the year, which means it is nearly tax time. Here are some great tips of things you can do before the end of the year which may reduce your tax bill.
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PrintEven if you are a start-up and made little this year, you can’t rely on low profit only to minimize your tax bill. Business Week has 10 great tips that can help.
- Buy new stuff. If your business has less than $810,000 in depreciable property, Section 179 of the tax code now lets you deduct up to $250,000 (up from $125,000 last year) on purchases of new equipment. Then you can take bonus depreciation equal to 50% of the equipment’s value, all before regular depreciation kicks in. Just start using the new gear before year end. [external hard drives, laptops, printers are good ones to get now]
- Pay your reservists. Get credit for paying employees who have been called up by the reserves. The Heroes Earnings Assistance & Relief Tax Act of 2008 lets businesses with fewer than 50 employees get a tax credit when they pay reservists the difference between their civilian and military pay.
- Drive A Green American Car. Buy a hybrid car for your business and you’ll get a tax credit based on the vehicle’s fuel efficiency. The credit comes to $1,300 on the 2008 Chevy Malibu, or $3,000 for a Ford Escape or Mercury Mariner two-wheel drive.
