In the blink of an eye, it will be September and there will be just four months left in 2024 to maximize tax credits and deductions for your business.

Here are some questions you may want to think about to make the most of the time left in 2024.

Have you been thinking about purchasing equipment, machinery, certain software, or furniture?

Under Section 179 of the tax code, you can deduct the full purchase price (up to certain thresholds) if you put the item purchased into service this year. As an alternative, you may be eligible for bonus depreciation under Section 168, where you can deduct 60% of a qualified expenditure this year and 40% over the remainder of the item’s useful life. (Bonus depreciation will decrease to 40% in 2025 and 20% in 2026; then, it phases out in 2027.) Before making any purchases, you may want to explore how  energy-efficient equipment can help you reduce ongoing operating expenses.

Are you considering updating your restaurant?

Section 168 bonus depreciation can also be used for certain interior improvements. A cost segregation study may help identify fixed assets that qualify for faster depreciation (just give yourself enough time, as they usually take four to eight weeks to complete). If you own the building where your restaurant operates, additional tax deductions may be available for energy-efficient improvements.

Do you need maintenance or repairs performed on equipment?

As long as the maintenance or repair isn’t to a critical or major component, you may be able to deduct the full cost rather than capitalizing and depreciating it over time.

Are you looking for ways to strengthen your ability to attract and retain employees?

If you meet eligibility requirements, you may receive tax credits for certain benefits you provide to your employees, including health care coverage, retirement benefits, childcare, and education or student loan benefits. In addition, any year-end bonuses you give to employees are tax-deductible.

Are you looking to hire additional help for the holiday season?

Hiring members of certain groups, like veterans or public assistance recipients, may make you eligible for the Work Opportunity Tax Credit (WOTC).

With the holiday season approaching, should you step up marketing efforts?

Like other costs of running your business, advertising, and marketing expenses are usually deductible. You may also want to consider selling gift certificates to boost revenues this year (sales tax won’t apply until gift certificates are used).

If you’re hoping for a year-end burst in sales but worried about ending up with extra food, have you considered food donations?

Donating extra food to qualified non-profit organizations benefits the community and provides tax deductions – as long as you keep good records.

Should you stock up on bulk purchases of nonperishable goods?

It can help reduce your taxable income this year and give you some breathing room on purchases going into 2025.

If answering these questions brings up more questions, please don’t hesitate to reach out to the professionals at RBT CPAs for answers. We offer accounting, advisory, audit, and tax services – as well as estate and gift planning. To learn more, give us a call or send us a message. We would love to have the opportunity to show you how we can be Remarkably Better Together.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.