Familiarize yourself with the rules before starting your business so you're careful to catch all those important deductions. How to Depreciate Property provides the classifications of property and the depreciation schedules relative to each classification. Find everything you need at our Small-Business Tax Center . Thinking ahead to when your husband will be running his own business, look for the Section 179 deduction, a tax break specifically designed to help small businesses. A more complete discussion can be found in IRS Publication 946 .
Timing is everything.
While your husband is still an employee, you may get a bigger deduction by lumping as many of these purchases as possible into one year, since the 2 percent floor is based on your adjusted gross income in a single year. The strategy of grouping miscellaneous deductions into one year may increase your chances of actually being able to get the deduction. If your adjusted gross income varies significantly from year to year, lumping these expenses into the lower adjusted gross income year may also give you more bang for your buck. More Get a firm grasp on your business taxes to avoid complications. Laura A. Collins is a CPA and freelance writer with more than 18 years experience in finance and taxation.