There’s still time for business owners to cut their 2021 tax bill — here’s how

You still have time to significantly reduce this year’s business income tax bill — even with all the uncertainty about which proposed federal income tax changes, if any, will become reality. Here are some moves for business owners to consider, but stay tuned for developments.

Claim 100% first-year bonus depreciation for late-breaking asset additions

Thanks to the 2017 Tax Cuts and Jobs Act (TCJA), 100% first-year bonus depreciation is available for qualified new and used assets that are placed in service (put into business use) in calendar year 2021. That means your business might be able to write off the entire cost of some or all of your 2021 asset additions on this year’s federal income tax return and maybe on the state return too.

So, consider making additional acquisitions between now and December 31. Contact your tax pro for details on the 100% first-year bonus depreciation break and exactly which assets qualify.

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