Another Priceless HTT by PICINK

Here’s a “Hot Tax Tip” (HTT) for the end of the year.

Everyone knows that you can reduce your tax liability by making a major purchase and taking advantage of the Section 179 deduction. This deduction is limited to the smaller of either the amount of taxable income (or profit) the company has made in a year or $125,000. If your major purchase does not qualify for the Section 179 treatment, you will be forced to capitalize this expense over a period of years.

It’s not always necessary to make a major purchase to save tax dollars. A business or individual in business can stock up on those ordinary and necessary items before December 31st. Now is the time to purchase your printer supplies as well as pens, filing supplies, etc. Not only can you reduce your tax burden, but also the prices of all consumer goods seem to be rising and you just may save some money on the purchase itself. As oil prices increase the cost of plastics and product transportation will rise and there you go... the cycle continues. You are going to need this stuff, anyway. Why not buy when it is to your best advantage to do so?