{"id":17580,"date":"2024-11-24T00:15:04","date_gmt":"2024-11-24T00:15:04","guid":{"rendered":"https:\/\/heyerinc.com\/2024\/11\/24\/bonus-property-depreciation-big-tax-savings-for-southeastern-fl-business-owners\/"},"modified":"2024-11-24T00:15:04","modified_gmt":"2024-11-24T00:15:04","slug":"bonus-property-depreciation-big-tax-savings-for-southeastern-fl-business-owners","status":"publish","type":"post","link":"https:\/\/www.heyerinc.com\/blog\/2024\/11\/24\/bonus-property-depreciation-big-tax-savings-for-southeastern-fl-business-owners\/","title":{"rendered":"Bonus Property Depreciation: Big Tax Savings for Southeastern FL Business Owners"},"content":{"rendered":"
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Pause and take a collective exhale with me\u2026 <\/p>\n

The presidential election is behind us. Now that the chaos is over, we can focus on what\u2019s ahead. I\u2019d suggest taking a little sage advice from those t-shirts we had in 2010 \u2013 \u201cKeep Calm, and Carry On.\u201d<\/strong> <\/p>\n

With a new president in office, there are going to be plenty of tax legislation changes in the near future \u2013 those Trump proposed in his campaign and those he didn\u2019t. Because as we all know, campaign promises don\u2019t always play out as we expect. <\/p>\n

For right now, I\u2019d be looking ahead at the possible state and local tax (SALT) limitation changes<\/span><\/a>. SALT limitations are a hot topic right now because the current 10k cap creates a penalty for couples filing jointly. Many are calling either for a raise of the limit up to 20k for this tax situation\u2014or for scrapping the limit entirely.<\/span><\/p>\n

As with many tax things, I\u2019ll keep you updated on which way this one ends up going. <\/span> <\/p>\n

Another big tax change possibly on the horizon is <\/span>the raise of the bonus depreciation rate<\/span><\/a>. Trump is talking about bringing the deduction rate back up to 100 percent \u2013 which would be great news<\/i> for you as a business owner. It would mean enormous tax savings on expenses like new equipment or facility upgrades. <\/span><\/p>\n

But that\u2019s further down the line. Right now, focus on taking advantage of the current bonus depreciation rate (60 percent) as much as you can before the year is up.<\/u> Because, unless Trump intervenes (which isn\u2019t certain), the depreciation rate is going to drop significantly with the new year.<\/span><\/p>\n

Please hear me when I say: Don\u2019t procrastinate<\/i>. Take action. As the trusted Southeastern FL <\/span>tax pro in your corner, I want you to experience as much of this benefit as you can.<\/p>\n

Let\u2019s jump into just how to do that\u2026<\/p>\n

Bonus Property Depreciation: Big Tax Savings for Southeastern FL Business Owners<\/strong><\/span>
\u201cNothing is more expensive than a missed opportunity.\u201d \u2013 H. Jackson Brown Jr.<\/i><\/span> <\/i><\/p>\n

As a business owner, it\u2019s up to you to make the decisions that bring your business growth \u2013 like when to expand your services, upgrade your equipment, or even consider opening a new location. I want to submit to you that, because of tax provisions around property depreciation and a particular one right now known as bonus depreciation, <\/i>the time to make those changes may be now. <\/span><\/p>\n

Basically, bonus depreciation is a way to deduct a significant percentage of the cost of certain business expenses, like renovations or equipment upgrades. <\/span><\/p>\n

But unfortunately, the deduction rate is phasing out, and in 2027 will rest at 0 percent (more on that later). So, you can probably guess the imperative here \u2013 take advantage of bonus depreciation <\/strong>for this year\u2019s<\/u> tax filing. <\/span><\/p>\n

Every move you make to take advantage of this means\u2026 More resources available for you to invest in your business\u2019s growth<\/strong> next year. <\/strong>So, here\u2019s your little guide on how to take advantage of this particular property depreciation rate before the end of the year. <\/span><\/p>\n

What\u2019s the bonus?<\/u> <\/strong>Just how much gets deducted? Ask the TCJA. Back in 2017, the TCJA set a 100 percent write-off limit for the cost of eligible assets for business owners (a huge jump from the former rate of 50 percent). But it was too good to last and ended in December of 2022. The rate has been dropping by 20 percent each year since then.<\/span><\/p>\n

In 2024, the rate is 60 percent and will continue dropping by 20 percent each year until 2027 when it will phase out completely.<\/span><\/p>\n

So, if you want to take advantage of it now (before it drops to zero percent), here\u2019s a quick list of items to tackle before 2025 to take advantage of that 60 percent deduction rate:<\/span><\/p>\n