What is asset depreciation? Major business purchases, like machinery, are considered large assets. Depreciation is both an accounting and tax calculation method. From an accounting perspective, rather than deducting the entire cost of the purchase of a major asset in one year, you allocate the purchase price over the span of the asset’s lifetime. From
In a partnership, adding a new partner has a number of financial and legal implications. Let’s imagine you and your partners want to add a new partner to the mix. By making a cash contribution, the new partner will have a one-third interest in the partnership. Assume that your partnership interests have adequate bases so
Because of changes to some depreciation-related tax deductions, the benefits of a cost segregation study are now larger than they were.
Whatever your business’s situation, taking full advantage of available tax breaks for small businesses — including temporary relief in response to the crisis — is critical.
A cost segregation study may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow.
There’s good news about the Section 179 depreciation deduction for business property. The election has long provided a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time. And it was increased and expanded by the Tax Cuts and Jobs Act (TCJA). Even better, the
The Tax Cuts and Jobs Act changed the rules for business autos. Here are a few highlights.
Special tax breaks that allow deductions to be taken more quickly are available for certain real estate investments. There are two breaks you might not be able to enjoy due to a drafting error in the TCJA.