This is the 11th in a series of 23 tax tips that AdvisorOne is publishing on each business day in March as part of our Tax Planning Special Report (see our Special Report calendar for a more complete list of topics to be covered and experts who will deliver their insights).
Today’s tip comes from Bernard Kiely of Kiely Capital Management in Morristown, N.J. Mr. Kiely is a CFP and CPA and has been a fee-only financial planner and provider of income tax services for individuals for more than 25 years. He is a long-time member of NAPFA, where he serves as the dean of NAPFA University’s School of Taxation, and holds a BA in Accounting from Upsala College and an MBA from Rutgers University.
The Tip: Use the Section 179 Deduction
For clients who are business owners—and for advisory firm owners themselves—Kiely (left) reminds us to take advantage of the increased Section 179 deduction, under which a taxpayer can treat the cost of certain business property as an expense and deduct that expense in the year during which the property is placed into service rather than depreciating it over several years.