Apr 16

Last Chance to Deduct

Tax Day in the US is April 17 this year, so you have one more day to do some “creative” accounting. Here are ideas for some last-minute tax deductions.

1. Furniture: Any furniture, fixture, or any type of asset with a life greater than one year can qualify for a depreciation deduction. There are two ways to go about this: Take 20 percent a year over each of the next five years, or get the big bang at once – put 100 percent of the deduction into this year and get your money back at one time.

2. Mobile phone: You make the call! Forbes reports that you can claim a depreciation deduction for your fancy mobile phone, provided that you own it for the "convenience of your employer" or if it is required as a condition of employment. You can make that case, can't you?

3. SEP (Self-Employed Persons) funding: Fully funding this special pension will reduce your tax burden if you have enough money to fund it. So, try this: file an extension with the IRS and your state (you still have to pay your taxes). But you then have until October 15 to fund the SEP and file your return.