Some people seem to think running a business means you are making lots of money and don’t have to pay much out except for your employees and your building. However, this isn’t often the case. Businesses are always making purchases to further the business or improvements to the building itself. When this is done, it becomes necessary to learn what can be deducted for tax purposes to help offset the costs. The Section 179 expense deduction is one of the ways you can offset the costs of changes to your business.
Learn What Qualifies
The first step in the process is to learn what types of things will qualify for this type of deduction. One of the main purposes of this deduction is to make it more appealing for businesses to make environmentally-friendly changes to their business to help the environment, appeal to customers and save money overall. In general terms, making changes to your HVAC, lighting and business envelope should qualify, but you may need the help of the professionals to find out exactly what qualifies.
Complete the Work
The IRS has set forth guidelines that must be followed to ensure the work that is done qualifies for the Section 179 expense deduction. This is another reason to turn to the professionals who have experience with this area of the tax code. They will be able to help you establish a plan and decide which parts of the project you should move forward with and which ones you should abandon, at least for now. Once the work is complete, you are still not done with the process.
Inspections
The government requires inspections by certified companies to ensure everything meets the standards set forth in the Section 179 tax deduction. If you choose the wrong type of company to complete your inspection, you may be cleared for business, but you could ruin your chances of taking the tax deduction. Therefore, it is essential to pay attention to the company you choose to ensure the best results and the highest reduction in your tax liability.
The Section 179 expense deduction is designed to help businesses offset their expenses, especially in the area of improving their building to help the environment and save money. If you are interested in taking this deduction for your business, you need to learn what qualifies. Once you know what qualifies, you will be able to move forward with the work and the subsequent inspections by the right company to ensure you are able to take advantage of this important deduction.
To learn more about working with a company for your Section 179 expense deduction, visit the Walker Reid Strategies.
