Category: Business Taxes
What’s your year-end tax strategy? We break down what individuals and businesses can do now to maximize savings, avoid future tax hikes, and take advantage of opportunities while they’re still here.
Each time a business plans to invest in new equipment – management must make a decision: Should we buy the new asset or lease it? That decision’s important for a number of reasons. We’re talking about a significant investment of capital with far-reaching consequences; whether you buy or lease will impact your short-term and long-term finances, as well as future investments. So… should you buy or lease? The answer isn’t as clear-cut as you might think.
Like tax breaks? You’ll love this. Tax deductions based on depreciation are useful for any business, especially those in transportation, distribution, logistics and manufacturing, where companies regularly invest in equipment and other property. But what if you didn’t have to wait years for your deduction? What if you could take advantage of your entire tax-break upfront? With accelerated depreciation, you can.
Companies that engage in research and development (R&D) activities are facing major changes in the deductibility of these expenses. Historically, the costs incurred for R&D activities was immediately deductible. Beginning January 1, 2022, costs incurred for R&D activities will have to be capitalized and amortized over 5 years for research activities performed in the U.S. and 15 years for those performed outside the U.S.