Even 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.
Read the rest of the tips on Business Week. Consult your tax professional if you have any questions.