Estimated tax tip savings. Don’t get bogged down with capitalization, depreciation, and Section 179 expensing rules: You can now get an immediate deduction for virtually all tangible assets you buy that cost $500 or less.
The IRS is giving you an opportunity to simplify your business tax life, take immediate deductions, and avoid the recapture tax. No strings attached.
Here’s the deal. By following one simple new rule, you can now ignore complex capitalization rules and immediately deduct most business assets that cost $500 or less. That’s a no-brainer, right? It’s good for you, and it’s good for the IRS, since it means fewer audit battles over low-cost items.
But—for some reason only the government could explain—this special treatment is not automatic. You have to take affirmative action to get this treatment for your business. The good news is, it’s easy to do, it’s free, and it’s quick, but it all falls apart unless you remember one essential thing: You must ... Log in to view full article.