This week’s insight can help you save some dough while upgrading your office.
Now’s my favorite time of year to spot big business bargains. Black Friday ads have been released, and retail inventories remain high. That means significant savings are out there for everyone, particularly small business owners. Now, I’m not suggesting you throw caution to the wind and pile up big-time credit card debt, but entrepreneurs should consider November and December as the ideal time to make investments.
This is the unique intersection of retail deals and strategic tax planning. By now, you probably have a ballpark gauge of what your 2023 revenue and net income figures will look like. For some, it makes sense to take advantage of seasonal discounts to help your business run more efficiently in the new year – and you don’t have to camp outside a Best Buy or Walmart to do it.
Just about all the major big-box and online retailers are pushing the usual promotions on office equipment, furniture, and the sleekest tech gadgets, though popular subscription services might hold off on publishing their one-time sign-up savings until later in the season.
Business owners may take tax deductions on many of these purchases so long as they are considered by the IRS as qualified equipment. If you are in the 32% tax bracket, then a $1,000 investment effectively costs you just $680. As with most retail buys, don’t act impulsively. Here’s a tip: Build a list of all the items and services you’d like to purchase by December 31 to maximize your tax savings. As the deals pop up or if you see them in various Black Friday ads, you have my permission to go ahead and buy.
Retailers are particularly excited about this holiday season since there are five full weekends between Thanksgiving and Christmas. “Super Saturday,” the Saturday before Christmas, is usually among the busiest shopping days of the year, but waiting until then could mean fewer choices and bigger crowds if you dare venture to physical stores.
This year-end, consider taking advantage of these opportunities to give your business the edge it needs for the upcoming year. A little planning now can result in significant savings to get your 2024 off to a solid start.