"Depreciation and Business Credits: Tax Strategies to Lower Your Bill"

In this episode of How to Lower Your Tax Bill, host Terrence Hutchins breaks down two powerful tools for business owners: depreciation and business credits. He explains how these tax strategies can significantly reduce your taxable income and help you keep more of your hard-earned money.

Terrence covers:

• Depreciation: What it is, how it works, and how to decide between Section 179, bonus depreciation, and MAKERS.
• Business Credits: Key credits like retirement plan startup credits, research and development credits, energy investment credits, and more.
• Strategic tips on when to depreciate assets upfront versus spreading deductions over time.

Plus, hear the surprising story of how a bodybuilder successfully deducted baby oil as a business expense—proving that justifying your deductions can make all the difference.

Featured Tax Fact: In the 1980s, a professional bodybuilder successfully claimed baby oil as a deductible business expense because it enhanced his competition performance.

For more self-employment tax tips, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts.