Before the end of the year is typically the time that companies and people start to think about is there anything I should buy? The end of the year is the time that companies start to think about taxes and one of the ways to reduce your taxes is to make business expenses at the end of the year. Here are 7 things that your small business should consider buying before the end of the year.
Car or Truck Purchase: If you are looking to buy a new car or truck for your small business the end of the year is the best time to go. Many dealerships find themselves discounting their vehicles heavily in order to meet their annual sales goals. To meet these goals dealerships will have end of the year sales and if you are good enough you can usually negotiate the price down even further, especially if you are buying multiple vehicles.
In addition to wanting to meet their sales goals many dealers want to get the vehicles off the lot to get new vehicles on the lot for the start of the sales year.
Books: The end of the year is tax season. Purchasing books to help your business get through tax season or legal issues are deductible. Not only can they be deducted but they can help you get through the bog of information. You can deduct business operations books or books on your specific business but they must be deducted over the useful lifespan of the book not just for one year.
New Equipment: Depending on the purpose of the equipment and the type of business you have it is possible that you can write off new business equipment at the end of the year instead of turning it into capital. This means that you can go out and buy a new tractor, new bio-fridge, or a new forklift. New or additional equipment can help you improve and expand your business operations so that 2016 will be the best year for your business yet.
Some equipment dealers have the same mindset as a car dealer. They need to meet an end of the year sales goal. You can often get a good deal on equipment too. We can even help you finance this by starting here: Buy Business Equipment
New Computer and Software: Buying a new computer at the end of the year will allow you to find a great deal. Many companies extend their black Friday/Cyber Monday deals into December or otherwise have Christmas deals. If there is a new piece of software you want for your business and can get it bundled with a new computer you can claim it under Section 179 deductions as long as the cost fits within your allowed annual deductions.
Not only will you do good on your tax deductions but you will have a new computer with software that will prepare you for the next year or allow you to provide a workstation for a new team member.
Continuing Education: Purchasing continuing education for your team members is a great idea for the end of the year. As long as the continuing education applies to the position each team member is in then you can deduct it from your taxes. Now there are many online continuing education programs where you can purchase a subscription and team members can take as many classes as they want.
Higher trained and smarter team members can only make your small business stronger.
Promotional Content: Many types of promotional content can be deducted as current business expenses. The end of the year is a great time to buy business cards and ads. You can also deduct the expense of sponsoring a sports team or a youth activity group as long as there is an obvious connection between your business and the team.
The end of the year might seem like a weird time to start promoting your business harder but it only means that you will start the next year’s business off strong.
Hire a Veteran: Veterans make some of the best team members in the world. They are highly trained in their fields and willing to learn new fields and work hard. Hiring a veteran at the end of the year will provide you with a team member to make your company strong. At the same time hiring a veteran gives you The Returning Heroes Tax Credit. The veteran you hire must currently be unemployed and for each veteran you may get a tax benefit of up to 9.6 thousand dollars.