November 1, 2016
Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But enhanced tax breaks that allow deductions to be taken more quickly are available for certain real estate investments:
Although these enhanced depreciation-related breaks may offer substantial savings on your 2016 tax bill, it’s possible they won’t prove beneficial over the long term. Taking these deductions now means forgoing deductions that could otherwise be taken later, over a period of years under normal depreciation schedules. In some situations — such as if in the future your business could be in a higher tax bracket or tax rates go up — the normal depreciation deductions could be more valuable.
For more information on these breaks or advice on whether you should take advantage of them, please contact us.
Trying to decide where to retire? To avoid unpleasant tax surprises, it’s critical to consider state and local income, property, sales and estate taxes.
Today’s technology takes care of itself, right? Not exactly. Today’s business owners need to be vigilantly curious about whether their IT strategies are working and what could use an upgrade.
Business owners with children who are students in their teens or early 20s can save taxes by hiring them for the summer. Learn more.