December 15, 2006
We make and sell software and technology, we don't give tax advice. Hopefully, you already seek professional help with your business' books. If so, consult your tax professional about whether these year-end business and personal tax tips might be right for you:
In some cases, IRS regulations allow small businesses to expense capital equipment costs in the year of purchase, even if you finance them. Ask whether it would be beneficial to buy that new computer system, software (hmmm...) or even a new SUV for use in your appraisal practice before 2006 comes to a close.
If you had any casualty or theft losses that you didn't recoup from insurance or elsewhere, those are usually tax deductible.
2007 will bring new documentation requirements for charitable deductions. Now might be the time to donate cash or old equipment to your favorite charity.
Taking a deduction for mortgage interest? Worried you might owe on your taxes come April 15? You can make an extra mortgage payment this month and add to the amount of interest you paid -- and the amount which is deductible -- in 2006.
Did you change jobs (to a new one at least 50 miles away) and move in 2006? You might have a wealth of deductions related to the relocation if you don't have an employer who helped out.
Finally, a word of caution. Simply working from home does not entitle you to a deduction for a "home office" without more. Your home office generally needs to be your principal place of business, and you're best off having a portion of your home you use exclusively for work. The IRS guidelines for deducting home office expenses are available in PDF form by clicking here, and again, with this and with all the ideas above, consult a tax professional. It may be worth it!
Send an e-mail to firstname.lastname@example.org. Our team of industry experts would be happy to help with your next story.
a la mode and its products are trademarks or registered trademarks of a la mode, inc.
Other brand and product names are trademarks or registered trademarks of their respective owners.
Copyright © 2009 a la mode, inc. 1-800-ALAMODE (252-6633)