Here are seven popular ways to cut your 2011 business tax bill.
1. Supersize equipment deductions. The legislation enacted at the end of last year already provides an unprecedented write-off for business owners in 2011.
Strategy: Buy new equipment and place it in service before 2012. Under the 2010 law, you may combine an enhancedwith “bonus depreciation.”
For 2011, the maximumdeduction for qualified new or used equipment is a whopping $500,000 and doesn’t begin to phase out until costs reach a $2 million threshold. The bonus for qualified new (not used) equipment, which was previously set at 50%, increases to 100% for qualified assets acquired and placed in service before Dec. 31, 2012.
Tip: New equipment may qualify for both the Section 179 deduction and 100% bonus depreciation. These two tax breaks are scheduled to be downsized in 2012.
2. Take tax “good” from “...(register to read more)