Small business owners – especially during the COVID-19 era – need to save money whenever they can. The IRS recognizes this reality and offers a variety of tax incentives to help businesses both grow and save money. If you bought or leased a vehicle for your small business this year, you may qualify for […]
Category: Depreciation
How to Avoid Depreciation Recapture
Selling a business asset may feel like a win, but have you considered the tax implications? In this article, we break down the nuts and bolts of depreciation recapture and offer strategies to navigate it effectively. What is Depreciation Recapture? Imagine buying an asset for your business at $10,000 and depreciating it by $4,000 over […]
The Best Depreciation Schedules for Your Business Goals
When you purchase a fixed asset, you can’t always take the total expense of the purchase at once. Instead, you’ll need to calculate the allowed depreciation (and the rules change each year) to figure out how much of the purchase you can expense each year. A depreciation schedule helps you calculate and track the depreciation […]
Mileage Reimbursement Rules for Uber Drivers and Turo Owners
As a business owner, tax deductions are your best friend. By leveraging your qualified expenses against your income, you can effectively lower your tax obligation. When it comes to qualified expenses, the IRS allows a lot of regular business expenses to be written off. One of the best deductions for business owners and independent contractors […]
Leasing vs Buying a Car: Which Offers More Tax Savings?
Rideshare business owners are facing new tax regulations following the passage of the Tax Cuts and Jobs Act (TCJA) some of which have affected leasing and depreciation tax rules. As a result, Tax Reform means that rideshare business owners now need to reassess the implications of lease vs. buy tax before deciding to lease or purchase new vehicles.Here are some important points to consider in evaluating lease vs. buy tax.Lease Tax Treatment vs. Depreciation Depreciation is a tax method tha […] […]
Car Depreciation for 1099 Contractors and Car-Sharers
Carsharing presents a great opportunity for people with cars sitting in their driveway and for entrepreneurs looking to compete with traditional car-rental services. In addition, there can be key tax benefits. If you’ve earned money this year from sharing your car on Relay Rides, Turo, or Maven, you should know that you may be eligible to take a deduction on your taxes for your vehicle. The tax code’s vehicle Section 179 deduction could potentially save you a lot of money on your taxes. Here is […] […]
How To Calculate Depreciation Expense
Depreciation has a bad reputation. After all, nobody wants their assets to lose value. However, from a business perspective, depreciation helps your tax situation. Business owners need to keep close track of their depreciation expenses. Then, they can deduct it at tax time. To get started, you need to know how to calculate depreciation expense. […]