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7 Tax Strategies: Maximizing Tax Savings using Depreciation
Any small business will usually invest in machinery, equipment and vehicles. I often get the question, could I deduct an equipment or vehicle payment? The answer is No. However, you could expense the full cost of the truck or trailer fully or over time using depreciation.
How can I reduce tax payments using depreciation?
For example, let’s say you recently purchased a used or new truck for $65,000. You can fully deduct the $65,000 in the year purchased or over a period of several years using depreciation.
It’s a critical strategy for your toolbox; however, It’s not always clear if you want to use section 179. It depends on your net income, and you also want to leave room for future years if you think there may be significant growth over the years.
Do you want to reduce your tax payments this 2021? Let’s talk about maximizing your tax deductions to help you grow your business:
Maximize the tax savings of your Small Business this 2021:
We’ve been helping our clients implement tax planning to help them reduce their tax payments. As a result, they’ve been able to tackle huge financial goals and save a lot of money in tax liability.