Tax Tuesday: Tackling Taxes for Small Businesses

If you’re a small business owner feeling overwhelmed this tax season, there are some factors to consider when diving into your tax return. Mark Nichols (CPA, MST, MBA), a member of the Massachusetts Society of CPAs, joined Latoyia Edwards to offer advice on deductible business expenses and write-offs. “Generally, when a business buys property and equipment, you have to deduct the cost ratably over a period of time. It’s called depreciation,” Nichols said. “But there’s a small provision in the law for small businesses that allows them to deduct up to $500,000 in the year that you place the property you service. For example, stuff like furniture. It could be office equipment. All of that would qualify for this deduction, even heavy equipment used by landscapers and contractors.” Nichols also encouraged entrepreneurs to consider hiring a CPA to make sure their business is in the best financial position.