You still have time to significantly reduce this year’s business income tax bill. Here are seven yearend moves to consider. But you’ll need to act fast.
Thanks to the Tax Cuts and Jobs Act (TCJA), 100% first-year bonus depreciation is available for qualified new and used property that is acquired and placed in service (put into business use) in calendar year 2020. That means your business might be able to write off the entire cost of some or all of your 2020 asset additions on this year’s federal income tax return and maybe on the state return too.
So, consider making additional acquisitions between now and December 31. Contact your tax pro for details on the 100% bonus depreciation break and exactly what types of assets qualify. Hurry!
2. Claim 100% first-year bonus depreciation for late-breaking real estate qualified improvement property (QIP) expenditures
The 100% first-year bonus depreciation break is