If you are anything like most of us, you are already focused on your first-quarter cash flow. One great way to free up some cash is by maximizing your 2010 deductions. Here are some ways to do that:
1.Deduct charged expenses.
Both cash & accrual basis taxpayers can charge expenses on a credit card and deduct them in the year charged, regardless of when paid.
2. Buy those big ticket items.
It would be advantageous from a tax standpoint to buy any large fixed asset purchases by December 31, 2010 because of the special bonus depreciation rules enacted for2010 that allow an expense for 50% of the purchase.
3. Buy that car!
Maximize auto depreciation for 2010 purchases. IF you buy a new car before the end of 2010, your first year depreciation deduction will be $11,060. If you wait until 2011, your first year depreciation will be knocked down to $3,060.
4. First year business credit.
The Small Business Jobs Act of 2010 temporarily increased the amount of start-up expenditures entrepreneurs can deduct from their taxes for this year from 5000 to 10,000.
5. Sell that property!
If you have some business property that you have been considering liquidating, now is the time. As of January 1, 2011, Capital Gains rate will increase from 15% to 25%.
For information you can contact me at Jdanner@peoplelease.com
No comments:
Post a Comment