There is still time for you to take steps that may reduce the 2017 income tax bill for your business.

Consider making expenditures that qualify for the business property expensing option. The expensing limit is $510,000 for tax years beginning in 2017, and the investment ceiling limit is $2,030,000.

Expensing is generally available for most depreciable property, other than buildings. Examples of such property includes off-the-shelf computer software, air conditioning and heating units, and qualified real property. The latter includes qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property.

Because of this year’s generous dollar ceilings, many small and medium-sized businesses that make timely purchases will be able to currently deduct most if not all their outlays for machinery and equipment. What's more, the expensing deduction is not prorated for the time that the asset is in service during the year.

This can be a potent tool for year-end tax planning, because you can claim the expensing deduction in full (if you are otherwise eligible to take it) regardless of how long you held the property during the year.

Thus, property you acquired and placed in service in the last days of 2017, rather than at the beginning of 2018, can result in a full expensing deduction for 2017.

Businesses also should consider buying property that qualifies for the 50% bonus first-year depreciation if it is bought and placed in service this year. (The bonus percentage will decline to 40% next year).

The bonus depreciation deduction is permitted without any proration based on the length of time that an asset is in service during the tax year. As a result, the 50% first-year bonus writeoff is available even if qualifying assets are in service for only a few days in 2017.

Here are some other tax-planning steps you should consider:

To reduce 2017 taxable income, consider deferring a debt-cancellation event until 2018, or disposing of a passive activity in 2017, if doing so will allow you to deduct suspended passive activity losses.

These are just some of the year-end steps that may help your business save taxes. Contact us for more information about these and other measures, and to help you tailor a plan that will work best for you.