Re: What Deductions & Depreciation?
If your making payment on some thing, most of the time is is better to deprecate it as to match the payments, thus the deprecation will off set the payment, as if you take a 100% deduction on some item that is big and your making payments on it the payment next year can not be deducted from the taxes payed, but there are rules on the things you can and can not deduct fully, or deprecate, your accountant is usually qualified to figure it out,
depending on income and things purchased and if your looking at buying supplies or tools and equipment, going in for a pre tax evaluation could be help full,
you will get an idea where your tax liability will be, and if say you want that new camera or machine, would it make sense to buy it now and take it off this years taxes, or wait until January for buying it and put it on next years taxes,
same thing with supplies, say another $ 3000 in deduction could change the tax rate and save you a lot on taxes, you may consider buying some suppose that you know you will be needed in the coming year, drain cables, fittings and consumables, what ever you use,
but normally with out a pre end of year tax consulate you will not know, until it is to late,
I have seen some businesses and farms that they had a choice, buy a new truck or piece of equipment, or give that money to the government in taxes, (they may not have felt like they could really afford the purchase of it, but felt it was better getting some thing that would help them in there business, than just loose the money to the feds, the money was going one way or the other),
(one other thing, they are talking about limiting deductions, in the future, may be good idea to see where you set and what you can do this year, and not put it off for next), (remember there not going to raise taxes on the middle class)
Last edited by BHD; 12-04-2012 at 11:19 AM.
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