It’s Your Money, And You Should Keep More of It

By | February 6, 2021

As I write this, the biggest issue on the minds of businesspeople everywhere is “taxes”. 

Of course, this argument has been going on for centuries (the USA was founded partly due to unhappiness with taxes), but there is a very valid point here. “Enough with the taxes” say small and mid-sized companies, and they’re right.

Businesspeople, especially those entrepreneurs who put in the 12-14 hour days to make their businesses succeed, always seem to take the brunt of it. It’s easy to say “tax Bill Gates more” (even Bill says that.) But tax increases typically include more taxes on working businesspeople. The owner of that 5-75 employee company feels like he or she pays enough taxes, and I cannot say I disagree.

But taxes are inevitable. We can yell, write, and argue until we are blue in the face. The taxes will still be there.

So let me tell you the single best way to reduce your tax burden. Use Section 179 annually. 

This accomplishes two things: First, you get equipment your business needs anyway. All businesses use equipment, so getting yourself on a consistent “let’s upgrade our equipment” schedule can help you in a productivity sense (better equipment = more efficient operations). 

But the big takeaway is getting new (or new to you) equipment also lets you MARKEDLY REDUCE THE TAX YOU PAY.  

Section 179 lets you write off the entire purchase price of qualifying equipment (even if you finance the equipment). This comes right off your taxable income, and can really make a huge difference in your tax obligation. 

In short, you keep more of your own money, instead of giving it to the IRS. There is not a small or mid-size business owner alive who doesn’t appreciate that.

I’ve been touting Section 179 for well over a decade now. But this is the strongest I’ve ever felt about it. It’s your money – keep more of it. 

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