It is that time of year to consider the tax implications of your office equipment. As the year winds down, take a look back at what you’ve done and take a look forward to what you can still do before the year ends.
As the year winds down consider increasing expenses. Purchase items your business will require in the immediate future to maximize deductions for this year. If you can see a need for goods and services in the first quarter of the new year, buy them now, if cash flow permits.
One area to consider is office equipment purchases (or leases). If you will be buying new office equipment, consider purchasing now. You’ll have to decide whether an immediate write off is best or spread out the depreciation over years. Consult with an accountant to examine your circumstance and company structure to maximize your deductions. In addition, your equipment will have to be in your office, “in use” by year-end.
Another area is equipment repairs, and maintenance. If you do it before 12/31, it is an expense in this year and could be deductible.
As with all things related to taxation, please consult your tax adviser or accountant.
The Office Farmer