As a small-business owner, you can set yourself up for some generous tax breaks by knowing a few vehicle and home-office deduction rules.
And if you operate as other than a C corporation, you will realize the tax breaks on your personal tax return. If you operate as a C corporation, the C corporation gets the tax breaks on the corporate tax return (still, as the owner, that’s very good for you).
If you claim your business income and deductions on Schedule C of Form 1040, the tax breaks in this article will appear on your Schedule C. If you operate as an S corporation or partnership, the tax breaks will flow through to you from the K-1.
What exactly are these tax breaks? How do you go about realizing them?
1.
You need a qualifying heavy vehicle on which you can claim Section 179 expensing (depreciation in advance).
2.
If you would like bonus depreciation, you need a new (not used) vehicle.
3.
If your percentage of business miles is low, you need a certain type of office in your home. The home office can create deductions where none existed before. ... Log in to view full article.
