Estimated tax tip savings. You convert an $8,000 entertainment center to business use. With the right tax strategies, you can deduct up to $8,000 in depreciation and eliminate all tax when you exchange the entertainment center for a new one—all of which could put several thousand extra dollars in your pocket.
When it comes to tax deductions, your personal assets usually don’t help you much. Lawmakers reserve the best tax-reduction tools for the assets you use in your business.
So what happens when you convert a personal asset to business use? Wouldn’t it be wonderful if you could immediately begin depreciating those assets and taking deductions to recover the money you have put into them?
Surprisingly, tax law gives you a way to do this. Using the right strategy, you can convince the IRS to overlook your asset’s past life and see it as a 100 percent business asset, unlocking thousands of dollars from such great tax benefits as ... Log in to view full article.