Section 179 of the Internal Revenue Code allows a deduction for the full purchase price of certain equipment and/or software you bought or financed during the tax year. While many purchases are deductible under Section 179, you won’t be able to claim this benefit for every piece of equipment you purchase. However, the deduction decreases on a dollar-for-dollar basis if you’ve placed more than $2 million of Section 179 property in service during a taxable year. Listed below are several items that qualify for the deduction:
Business vehicles with a gross weight greater than 6,000 lbs.
Computers and “Off-the-Shelf” software
Machines for business use
Office furniture and equipment
2. Vehicle usage
This particular deduction applies to you if you’re the sole proprietor of a business and use your personal vehicle in your day-to-day operations. If you use your automobile for both personal and business purposes, you need to divide the mileage accordingly. You should keep record of any business miles you drive each year in the event you need to verify this information with the IRS. You can refer to the IRS’ standard mileage rates document and Publication 463 for more information.
3. You’ve hired your child
If you employ one or more of your children who are under the age of 21 years, you won’t have to pay social security and Medicare taxes associated with their income if you own a sole proprietorship or participate in a partnership with your child’s other parent. The Wall Street Journal noted this can add up to $15.30 in savings for every $100 you pay your kids.
Obviously, there are more than just these three deductibles. If you want to learn more about how you can save money on your tax returns, if you have any questions, or if you would like to discuss the matter further, please contact me, Jeffrey Pittard, at 201-806-3364.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
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What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
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Tree Tax Deductions Small Business Owners Should be Aware of
Author: Scarinci Hollenbeck, LLC
The U.S. tax system can be pretty complicated, especially for small businesses.
Section 179 of the Internal Revenue Code allows a deduction for the full purchase price of certain equipment and/or software you bought or financed during the tax year. While many purchases are deductible under Section 179, you won’t be able to claim this benefit for every piece of equipment you purchase. However, the deduction decreases on a dollar-for-dollar basis if you’ve placed more than $2 million of Section 179 property in service during a taxable year. Listed below are several items that qualify for the deduction:
Business vehicles with a gross weight greater than 6,000 lbs.
Computers and “Off-the-Shelf” software
Machines for business use
Office furniture and equipment
2. Vehicle usage
This particular deduction applies to you if you’re the sole proprietor of a business and use your personal vehicle in your day-to-day operations. If you use your automobile for both personal and business purposes, you need to divide the mileage accordingly. You should keep record of any business miles you drive each year in the event you need to verify this information with the IRS. You can refer to the IRS’ standard mileage rates document and Publication 463 for more information.
3. You’ve hired your child
If you employ one or more of your children who are under the age of 21 years, you won’t have to pay social security and Medicare taxes associated with their income if you own a sole proprietorship or participate in a partnership with your child’s other parent. The Wall Street Journal noted this can add up to $15.30 in savings for every $100 you pay your kids.
Obviously, there are more than just these three deductibles. If you want to learn more about how you can save money on your tax returns, if you have any questions, or if you would like to discuss the matter further, please contact me, Jeffrey Pittard, at 201-806-3364.
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