What you need to know about depreciation now!

When it comes to depreciation and Section 179 deductions, what Uncle Sam giveth, Uncle Sam taketh away.

You see, the tax law grants you some nice depreciation deductions, but then recaptures or otherwise taxes them. This means you need to do some careful tax planning in order to save money.

How should you start? By reading my brand new article titled Tax Tips: Depreciation and Section 179: The Good, Bad, and the Ugly!

Three ways our fact-filled article can help you:

1. We’ll tell you how the IRS’s “recapture” game works. When you’re a victim of the recapture tax, you pay taxes on the depreciation deductions that the tax law allowed you to deduct. What can you do to protect yourself? Read the full article.
2. We’ll explain “unrecaptured Section 1250 gain.” This is another nasty flavor of recapture. In this case, you get the deduction at your ordinary rate but you pay the Section 1250 recapture tax at an equal or lower tax rate (usually). Want to learn how to avoid tax on both recapture income and unrecaptured Section 1250 gain? Read the full article.
3. You’ll learn when the IRS says depreciation actually starts. When does depreciation begin? When you buy your business vehicle, or when you place it in business service? You’ll find the answer to this question and many more when you read the full article.