Small Business Tax Tip: Use Depreciation to Reduce Tax Bill

Depreciation this. Depreciation that. What does depreciation really mean for you and your business?
In the latest Grow by Joe video, I’ll share all of the business tax tips you need to know to fully understand depreciation, and how it can help your business.
If you’re a small business owner, then depreciation can be key for helping you to reduce costs by cutting taxes. Specifically, how to leverage both depreciation and small business loans or equipment financing to reduce your tax bill to ZERO!
Tune in to learn all of the tax depreciation tips you need to know to take your business to the next level!
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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital & Services and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions or mistakes.

[@craigpretzinger7508]

My understanding is, using your example, the 100k depreciation would offset against revenue, as a deduction lowering gross income, not a dollar for dollar tax credit which is what you’re showing?

[@kronk358]

Yeah. He is straight up lying

[@aryanasmith4426]

Excellent video! Thank you very much for your hard work.

[@illesttraitz1685]

for large equipment purchases I believe the break down the depreciation across the years, so 5 year term = 20k tax break per year

[@craigpretzinger7508]

I thought for large or heavy equipment (for example vehicle over the 6000 and under 14k lbs section 179) you can depreciate full amount in year 1

[@dcwshoreline5416]

Great insights, greetings from 🇨🇦!

[@precisionenterprises1295]

Cool video... I love all the editing, great job

[@GrowbyJoe]

Thank you, Precision Enterprises!

[@Florcitalove]

Will a new car (financed) be claimed in this lum sum? For instance, my daughter works independently and needs a car she bought herself a brand new car Gross Income $60,000 SE Tax (15.3%) plus state Can she depreciate her car? I understand she can do Section 179 or Bonus depreciation… can you explain which would be the best for her ?

[@maliburu]

I believe that only applies if she purchased it for her own business and does not use it outside of business. Example: pizza shop purchases car for business purpose and can write it off as it is only used for deliveries. Is she works for uber or a taxi service and is using the car, they give her a tax form to write off wear and tear and mileage used but cannot be used as an entire expense on a tax form I believe

[@jgarcia9527]

What about the payment of that 100K equipment you just bought. Isn't that cash out of my pocket??

[@GrowbyJoe]

If you finance it then there is no cash out of your pocket. There will be a monthly payment over 2-5years depending on term approved for

[@ecoverdemaids4024]

Right, paying interest and having now a lisbility vs an asset?

[@mahmadi3722]

That is bullshit

[@mahmadi3722]

You can't avoid tax this way or any other way the accountants say. You will only lose your cash and they make money