Have you been thinking about adding, expanding or upgrading your video security system?
If your business operates on a calendar-year tax year and you lock in your contract with Vulcan Security Systems before December 31, you may be able to offset some of your video security system investment with tax savings.
Although we’re less than two weeks from the year-end, it you contact us before December 22, it may be possible for us to quote a new system and prepare a contract for your management team to approve by December 31.
If you’re already a customer who takes advantage of our proactive remote service options, you may benefit by prepaying some of your 2018 service contract before December 31, 2017.
We aren’t giving tax advice, but based on last week’s Congressional activity, it appears likely that significant changes to the US Tax Code will be enacted later this week.
Business Taxes Will Likely Be Higher in 2017 Than Future
It appears likely that businesses will benefit from lower tax rates in 2018 and beyond, as the US House and Senate have reconciled their two tax bills and plan to vote on the final bill before Christmas.
The upshot is that many businesses and pass-thru business owners will, most likely, have a higher marginal tax rate in 2017 than 2018, assuming the taxable income is about the same.
Under this scenario, the usual advice of tax planning professionals is to accelerate deductions in 2017 to reduce taxable income for the 2017 tax year. Since many small and mid-sized businesses operate on a calendar-year tax year, these businesses would need to lock in contracts by December 31, 2017 in order to take deductions or expense capital investments in 2017.
Section 179 options may be available for your business to allow your business to expense certain types of capital investments (subject to limits), even if the purchase is made late in the year.
Of course, every business financial situation is unique and whether or not tax savings are available will depend on a variety of factors, so you need to consult your CPA, CFO and other financial advisers to determine whether your business would benefit, tax-wise, from investing in your video security system by year-end.
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Phone: 205-290-9404
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About Vulcan Security Systems, Birmingham, Alabama
Vulcan Security Systems LLC does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Sources
AICPA has an excellent checklist of action items for 2017 year-end tax planning available in PDF.
The Balance: Year End Tax Tips for Business
CNN Money: http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html
