Tax Benefits of Going Green

Posted by servScene on December 31, 2008

Green business benefits more than just the environment — it also benefits your finances, by saving you money on taxes.  Here are some of the ways you can go green at the office — and then reap the benefits around tax time.

1. Buy energy efficient office equipment.  Office equipment used for your business 50 percent of the time or more is deductible on your business taxes.  This includes energy efficient office equipment, so next time you are shopping for electronics for your office, be sure to look for the Energy Star logo!
2. Recycle.  Anything that you do for your business, such as recycling, is deductible as a business expense.  In other words, recycling can not only reduce the amount of trash your business produces, it can also help to reduce the amount of taxes you pay at the end of the year.
3. Renovate your office.  Updating your office to be more energy efficient is also a tax deductible expense.  You may also be able to change your building’s classification on Form 4562, enabling you to deduct a larger portion of the expense from your gross income each year, decreasing your tax liability.  A cost segregation expert will be able to tell you for sure.

Of course, going green at the office really does help the environment, and that should be reason enough to do it.  However, there’s no denying that it can help you save money on your taxes, too!

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