My smartest clients are always thinking ahead. And the smartest accountants I know urge their clients to plan ahead on their taxes. With two months left in 2024, here are few tax moves to consider that may save you money.Mitchell Gerstein, a certified public accountant and senior tax adviser at Bala Cynwyd’s
Business owners that implement a 401 plan should also be aware of nondiscrimination test requirements, which ensure that highly compensated employees aren’t unfairly favored by the employer’s retirement plan. Businesses can deduct the value of a purchase in the year it was placed in service — when it’s first available for the business to use. For 2024, the limit is $1.22 million, with a phaseout starting at $3.05 million in qualifying equipment. Bonus depreciation, which can be applied after that deduction limit is reached, allows businesses to deduct 60% of the cost of qualifying assets in 2024.
According to Gerstein, the Inflation Reduction Act and other recent legislation provides tax credits for installing energy-efficient equipment, renewable energy sources, and sustainable building practices. It also includes tax credits for purchasing new and used electric fleet vehicles, he noted.