Tax Guy: What are the best tax breaks for self-employed people?

by | Aug 4, 2022 | Stock Market

Are you self-employed? Pull up a seat while I share three encouraging pieces of information about our beloved tax code. If you buy a new or pre-owned heavy SUV, pickup, or van this year and put it to use in your business, you’re potentially eligible for 100% first-year bonus depreciation for the business-use percentage of the cost. 

More good news: Setting up a business office in your home can lead to additional tax savings. Still more good news: You may also be able to claim the qualified business income (QBI) deduction.     Here’s how self-employed folks can cash in on these three valuable federal income tax breaks.  Note: By self-employed, I mean a sole proprietor, partner, or LLC member who is treated as a sole proprietor or partner for federal tax purposes. Onward.  Step 1: Buy a suitably heavy machine 100% first-year bonus depreciation is available for eligible vehicles that are placed in service between now and 12/31/22. But this juicy write-off is only available for an SUV, pickup, or van that’s heavy enough. That means one with a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds that’s purchased (not leased) this year.  So, you can write off 100% of the business-use portion of the cost of a sui …

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