2 results for tag: Tax tips


2023 Last-Minute Year-End General Business Income Tax Deductions

The purpose of this article is to get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money—although in the right circumstances, that will happen. But in most cases, you’ll probably realize the cash when you pay less in taxes. This article gives you six powerful business tax deduction strategies you can easily understand and implement before the end of 2023. 1. Prepay Expenses Using the IRS Safe Harbor You have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 ...

Key Insights into Depreciation from Beginning to Middle to End

Depreciation is a pivotal concept for anyone with assets in the business or rental sector. Yet despite its significance, depreciation can leave many taxpayers puzzled over when it truly begins. In essence, depreciation commences not when an asset sees actual utilization, but when it is set and ready for its intended use. This subtle distinction, as outlined by the IRS, is crucial for understanding tax deductions and maximizing asset value. This article delves into the specifics of when depreciation starts and offers guidance on the nuances of this crucial tax concept, using real-world examples to shed light on the IRS’s perspective. ...