Business Owners: When to Delay or Accelerate Taxable Income

Businesses typically want to delay taxable income into future years and accelerate deductions into the current year. But in some cases, they want to do the opposite. One reason might be tax law changes that may raise future tax rates. Another reason may be because you expect your business to pay taxes at higher rates in the future. There are ways to accelerate income into the current year and delay deductions into later years. For example, sell appreciated assets that have capital gains in the current year rather than waiting until a future year. Or depreciate assets over a number of years rather than claiming big first-year Sec. 179 or bonus depreciation deductions. Contact us for help © 2024