Hey freelancers, as the end of the year approaches, don’t forget to make the most of your section 179 tax deduction!
Did you know that if you buy equipment for your small business, you can deduct the cost from your taxes? Thanks to section 179, you can write off up to $25,000 in business expenses on things like transportation, off-the-shelf software, and most other tangible goods. It’s a great deduction that works to help out small businesses.
To really make the most of your section 179 deduction, you should load up on equipment before the end of the year, because to qualify for the 2014 deduction when you file this years’ taxes, your purchased equipment will need to be put into use between now and December 31, 2014.
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Now’s also the time to buy office equipment, like printers, faxes, and phones -- you can take that off on Form 1040, Schedule C, line 18.
If you’re interested in leasing instead of buying equipment, you can take that off too -- on section 20a of Form 1040, Schedule C. For all you graphic designers, this includes the Adobe Creative Suite.
Just remember: You must keep records of your purchases. This means receipts that include what, when, and where you bought the item.
So take advantage of those end-of-year sales and stock up on whatever you might need to keep your small business running smoothly! And if you’d like to read more about the section 179 deduction, click here.