Learn How You Can Write Off Up To $1M With The Right Franchise Acquisition!
A franchise can be a savvy investment, providing
tax breaks of up to $1 million!
If you're like many highly paid Americans you likely have a big tax bill coming up and are looking to mitigate that burden.
Did you know that some franchises qualify for a section 179 tax write off?
What is Section 179?
Section 179 of the US tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.
The current Section 179 Deduction is $1,000,000. The equipment must be used for business purposes at least 50% of the time to qualify.
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Which franchises qualify for the Section 179 Deduction?
All franchises that lease, finance or purchase business equipment valued at less than $2 million qualify for the Section 179 deduction.
The equipment must be used for business purposes at least 50% of the time to qualify.
If you're looking for a way to reduce your tax burden and get a great return on investment, consider investing in a franchise that qualifies.
Want our help?
With The Franchise Insiders, you can get help finding the right franchise for you and receive ongoing support after you're up and running. The Franchise Insiders has a proven track record of success and offers a variety of financing partners that can help you get the beast deal and lower your tax bill.
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More Free Business Tax Information
20 valuable small-business tax deductions
1. Utility costs
All of your small business' utility costs are tax-deductible, from water to electricity to the telephone. Keep in mind that while your primary home landline is not deductible, any other phones used for your business can get you tax deductions.
2. Marketing costs
All marketing and promotional expenses for your business are tax-deductible, including but not limited to:
-business cards
-advertisements
-logo design
-event sponsorships
-website design and development
3. Insurance expenses
Small-business owners can deduct any insurance policy they hold on their taxes. This includes, but is not limited to: health insurance, property insurance, business continuation insurance, liability coverage insurance, auto insurance, malpractice insurance
4. Business property rent
You can potentially deduct expenses for your business property if you're leasing or renting it. Also, if you work from home, visit the IRS website to check whether common expense such as utilities, mortgage interest and insurance premiums are tax-deductible.
5. Loan interest
Getting a loan for your small business is not unusual, but what you may not know is that the interest paid on that loan could be used as a tax deduction. As long as the loan comes from a legal and traditional lender and the money borrowed is only being used to cover expenses related to the business, you can deduct those costs from your income tax.
6. Transportation costs
You can deduct business-related car expenses from your taxes, including gas and oil changes — as long as you keep track of the mileage. If you only have one vehicle that you use for both personal and professional reasons, though, you'll need to carefully calculate how much of the total mileage was dedicated to each in order to receive a deduction. The IRS also offers a standard rate option of 58 cents per mile driven for business purposes.
7. Inventory expenses
If your business manufactures or buys goods for resale, you may be able to make certain income tax deductions. The eligible deductions include the cost of raw materials, manufacturing and storage, and labor.
8. Equipment and machinery lease
The cost of leased equipment and machinery is deductible, whether it is a printer, a truck or a toolbox. However, since these are not one-time costs, they are usually deducted over many years rather than only in a single tax year. You can check out this page for more information on the Section 179 tax deduction.
9. Office stationery and furniture
Though they may be small, the costs of business-related items such as pens, paper, notebooks, desks and chairs are tax deductible if you keep track of them. The same goes for office supplies and furniture expenses.
10. Travel costs
Traveling for business purposes can help reduce your taxable income come next April. This includes travel expenses to attend seminars, trade shows, meetings or conventions. In some cases, you may also be able deduct the cost of renting a vehicle or parking fees while on business trips.
11. Labor costs
If you pay a freelancer or independent contractor more than $600 in one tax year, you are not required to withhold taxes from their earnings. Instead, they will be issued form MISC-1099 at the end of the year.
12. Wages
Although you may deduct the salaries of your employees come tax season, this does not apply to LLC members, sole proprietors or partners.
13. Employee benefits
Employer-provided benefits, like healthcare or a retirement plan, can be deducted from your taxes.
14. Business debt
If you've ever lent money to an employee or supplier who never repaid you, or made credit sales to customers who never paid, you might be able to claim the debt as a bad debt deduction on your income tax. But you'll need proof that the debt was incurred for business purposes, not personal reasons.
15. Retirement plan
If you're self-employed, you can open your own retirement account and contribute to it regularly. The money put into your retirement fund is tax-deductible and can be claimed on your individual income tax form.
16. Publications
If you can prove that newspapers, magazines or books related to your business are necessary for operation, you may be able to deduct the expenses associated with them--everything from a newspaper subscription TO cable TV.
17. Education
If you need to get a degree or extra professional training for your business, you can deduct these costs as educational expenses. But, you cannot deduct the cost of education if it's intended for a different career path or has nothing to do with your business.
18. Business taxes
Taxes your business accrues can be subtractions from your income tax, such as sales tax, real estate tax, or other local, state or federal business taxes.
19. Gifts
You can deduct up to $25 per person in a given tax year if you give employees holiday gifts or other presents.
20. Repairs
You generally can't write off repair and maintenance costs when filing your taxes as a homeowner. However, if you're running your business from home, these expenses are deductible as long as they were intended to fix something broken or damaged--not for restoration or improvement purposes. The same goes for repairs made to a rental property you use for business purposes.
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Home office expenses
If you use a portion of your home exclusively and regularly for business, you may be able to deduct certain expenses related to the home office, such as rent or mortgage interest, property taxes, homeowners insurance, utilities and repairs.
Tell me the meaning of tax deduction?
A tax deduction is a reduction in taxable income, and thus results in a lower tax liability for the taxpayer. The most common deductions are for things like mortgage interest, charitable donations, and business expenses. There are many other potential deductions, but not all of them will apply to every taxpayer. The only way to know for sure which deductions you can claim is to consult with a tax professional or review the relevant tax code.
Business use of your car
If you use your personal car for business purposes, you may be able to deduct some of the related expenses, such as gas and oil. You can also deduct a portion of the vehicle's depreciation or "wear and tear." But you can only deduct the business-related portion of these expenses; if you use your car 50% for business and 50% for personal reasons, you can only deduct 50% of the relevant expenses. You will also need to keep meticulous records in order to substantiate your deductions.
Business meals
You can deduct the cost of business-related meals and entertainment, but there are some restrictions. The expenses must be "ordinary and necessary" and directly related to your business. They must also be reasonable in amount. You will need to keep receipts and other documentation to substantiate your deductions.
Charitable contributions
If you have a company that is a limited liability partnership and is taxable like a partnership, you have the option of making charitable contributions and passing the deduction onto yourself. The corporation may take a deduction from taxable donations if you have an IRA. Buying old computers or furniture for charity will bring goodwill, along with tax benefit. Unless you depreciated your equipment (written off) then you cannot claim any deductions.
Staying on top of your deductions
As you can see, there are many potential deductions for businesses of all types. The key is to keep good records and consult with a tax professional to make sure you are taking advantage of all the deductions that apply to your business. By staying on top of your deductions, you can save money on your taxes and use that money to grow your business.
Contact us today to get a free consultation.
Learn how you can make and
keep more money as a franchise owner!
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