We recently attended the 57th Annual Minnesota Society of CPA’s Tax Conference. It was a great conference with lots of insights affecting future tax planning in 2012 and beyond as well as last minute tax changes for 2011. For 2011 there is still time for businesses to improve their bottom line through equipment and vehicle purchases.
Looking to Reduce Your Tax Bill for 2011?
The “Bonus” Depreciation deduction can mean big tax savings for new equipment purchased in 2011. A temporary provision in the tax code allows you to deduct the full cost of new equipment purchased and placed in service in 2011, different rules apply at the state level.
Considering Purchasing A New Business Vehicle Before The End Of The Year To Reduce Your Tax Bill
A temporary provision in the tax code allows you to deduct the full cost of purchasing a new vehicle used 100% for business that has a gross vehicle weight of 6,000 pounds or more. This deduction can significantly reduce your tax liability in the first year. However, keep in mind, you may have a significant taxable gain in the year the vehicle is taken out of service or if the business use drops below 50%. The tax treatment varies greatly depending on how the vehicle is disposed of.
Depending upon your situation different rules may apply, to learn more about these tax deductions and how they will affect you contact Robin Giguere and Theresa Gebhard at 651-328-6080.
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