As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time.
Congratulations, we’ve made it through 2020! We’ve proven to ourselves that we’re disciplined and strong! And we appreciate even more what our family and friends mean to us! Does that mean we don’t need to make resolutions this year? Maybe. But it’s always good to have a goal. So, if there’s nothing to resolve for yourself, why not direct your resolutions outward for 2021?
S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share of these losses on your personal tax return to the extent of your basis in the stock and any loans you personally make to the entity.
