11th Hour Tax-Saving Tips, Part 4

Here are five ways to save on your taxes. Number 4? Lease property and equipment to your business.

Lease property and equipment to your business to create tax-deductible expenses. If, during the current tax year, your business has been, or will be, using property and/or equipment that you personally own, you may be able to lease these items to your business. This creates a tax-deductible lease expense, while you take dollars out of your business in the form of lease income (not subject to Social Security payroll tax liability). Then you can reduce your taxable lease income by taking any applicable depreciation expense on your personal income tax return.

SOURCE: Ask the Experts