In today’s fiercely competitive business world, staying ahead of the game means seizing every opportunity to grow your brand and save money. One such opportunity often overlooked is the potential for significant tax deductions tied to your advertising and marketing expenses. We’re here to show you how to make your business both sexier and savvier when it comes to branding and taxes. To unveil the secrets, we sat down with the brilliant Jim O’Rilley, a Shareholder and Domestic Tax Practice Leader CPA at Doeren Mayhew. Jim shares valuable insights into how you can leverage tax laws to your advantage while enhancing your branding and marketing efforts.
Invest Your Money in Your Signage and Branding as a Tax Write-Off at Year-End!
Let’s get straight to the point. When you invest in your branding and signage, not only do you attract new customers, but you also unlock the thrilling potential of turning these investments into year-end tax deductions. Picture this: eye-catching vehicle wraps that draw customers in or a stunning monument sign that leaves a lasting impression. These expenses aren’t just marketing investments; they’re your ticket to significant tax savings.
The government recognizes the pivotal role that marketing plays in driving business growth. That’s why expenses related to advertising and marketing are not just an ordinary deduction; they’re an extraordinary one. When executed with finesse and expert guidance, your marketing and advertising campaigns can yield a high return on investment, both in boosting your brand and reducing your tax liability.
Key Updates to Tax Savings Laws for 2023
Now, let’s turn our attention to the exciting updates in tax laws that can supercharge your business:
Section 179 for 2023: The Section 179 deduction limit for 2023 has been pumped up to a staggering $1,160,000, with a total equipment purchase limit of $2,890,000. This is a significant leap from the 2022 Section 179 tax deduction, which was capped at $1,080,000 with a purchase threshold of $2,700,000.
Bonus Depreciation for 2023: Prepare to be amazed. Bonus Depreciation now offers a mouthwatering 100% deduction for all qualified purchases made between September 27, 2017, and January 1, 2023. But that’s not all. Starting in 2023, this deduction still sparkles at 80%. The good news continues in the coming years: 60% for 2024, 40% for 2025, 20% for 2026, and 0% beginning in 2027.
As Jim put it, “I think it’s that by doing things before the end of the year, it allows you to claim, under IRS rules, the potential for immediate expensing under Section 179 or bonus depreciation. However, for 2023, the bonus depreciation has been limited to 80% of the capitalized cost. So, you may need to think differently about which method makes sense for you. But by accelerating purchases into the current year, you also accelerate the availability of potential deductions to offset taxable income.”
Enhance Your Brand with National Branding
Now that you’ve seen the seductive side of branding and tax savings, it’s time to introduce you to your ultimate ally – National Branding. They are masters at crafting high-impact signage and captivating fleet vehicle graphics, all poised to attract a stream of new customers in 2024 and beyond.
Their expertise isn’t limited to aesthetics; it extends to helping you make the right branding choices that turbocharge your business’s promotion while delivering substantial tax deductions. So, when you think about your branding and signage needs, remember that National Branding is here to help you transform your marketing budget into a financial powerhouse, blending brand enhancement with tax savings.
As you plan for the future, keep in mind that your business’s visual identity and marketing strategies can be the dynamic duo that propels your growth, both in attracting customers and in saving money through strategic tax planning. Don’t let this opportunity slip through your fingers. Get in touch with National Branding today and make the most of your branding investments. It’s time to make your brand sizzle while your tax savings soar!