Over the years, I’ve found that people often forget about some of the simplest tax deduction. So, I made a list of over 300 tax deductions. The list is part of “Loopholes of the Rich”, if you want to get the list fast. Otherwise, I hope you look forward to a discussion of these deductions over the next few months.
Abandonment of business property. If you have equipment, furniture, inventory or other assets that have become worthless, write them off! You can take a loss for these on your tax return. Loss in this case means the difference between the book value of the asset and the current value (assumably zero).
NOTE: This is a great little loophole for real estate developers. If a developer buys a property as a tear down, the goal would be to get an appraisal putting as much value in the building as possible. Then tear it down (or better yet, donate it to the fire department to burn it down) and you’ve got a huge write off!