*** ATTENTION LANDLORDS****** Are you buying new appliances for your rental? Make sure to keep the amount per appliance under $2,500, or under $5,000 (with applicable financial statements) so that you can use the de minimis safe harbor election. Using the De minimis safe harbor election allows you to deduct the cost of the appliances as an expense (aka immediate deduction), rather than having to capitalize (aka dragging the deduction out) the cost. Combining the De minimis safe harbor elections along with Section 179, & Section 168 will yield you great tax deductions and LOWER YOUR TAX LIABILITY.
Please note: There are RULES that need to be followed, so it is imperative that you work with a credentialed tax professional that can prepare your returns. You can also choose the DIY (do it yourself) method, and then pay a credentialed tax professional for tax resolution services. Tax resolution work pays more, so your professional will thank you.
Although we’ve given you the basics, this is not an all inclusive article. Should you have questions, or need business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office at 855-743-5765. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.