Tax Guy: Year-end tax planning moves to make now if you run a small business

You still have time to significantly reduce your 2016 business income tax bill. Here’s a digest of the best year-end tax-saving moves to consider.

Buy a heavy SUV, pickup or van

Big SUVs, pickups, and vans are useful for hauling people and stuff around in your business, and they also offer major federal income tax advantages.

  • Thanks to the Section 179 instant depreciation deduction privilege, you can probably claim a current-year write-off for up to $25,000 of the cost of a new or used heavy SUV that is put to business use before the end of the tax year.
  • After claiming the Section 179 deduction, you can claim 50% first-year bonus depreciation for a new (not used) vehicle that is put to business use by Dec.

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