End of Year Business Tax Planning Tips for 2010

There are several ways businesses can save big by acting before the year ends.

With the end of 2010 quickly approaching, companies should think about year-end tax planning. Make the right moves between now and the close of the year, and you and your business could save plenty.

Acquire needed business assets now. If you are thinking of buying significant assets for your business, you still have two more months to place them in use and qualify for bonus depreciation for 2010, allowing you to deduct 50% of the cost right away. The other 50% is recovered through regular depreciation. Bonus depreciation can be claimed on new assets with useful lives of 20 years or less, including machinery, equipment, land improvements and single-purpose farm buildings such as chicken coops. Act quickly, as this tax break ends after 2010.

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Joy Taylor
Editor, The Kiplinger Tax Letter

Joy is an experienced CPA and tax attorney with an L.L.M. in Taxation from New York University School of Law. After many years working for big law and accounting firms, Joy saw the light and now puts her education, legal experience and in-depth knowledge of federal tax law to use writing for Kiplinger. She writes and edits The Kiplinger Tax Letter and contributes federal tax and retirement stories to kiplinger.com and Kiplinger’s Retirement Report. Her articles have been picked up by the Washington Post and other media outlets. Joy has also appeared as a tax expert in newspapers, on television and on radio discussing federal tax developments.