• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Two tax-saving moves you can make this summer

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Sorry, but you can’t take a summer vacation from tax planning. Take your eye off the ball midway through the year, and you could miss out on valuable tax deductions and credits ripe for picking.

Here are two summertime tax moves that could make you smile come tax-return time:

1. Treat clients to a fishing trip or a day on the links this summer. You can deduct 50 percent of your entertainment expenses for clients—meals, drinks etc.—if the entertainment is associated with your business (i.e.,
preceding or following a substantial business discussion).

Take advantage of summer weather to entertain clients outdoors instead of in a stuffy restaurant, and deduct the costs. Tip: You can’t claim depreciation deductions for an entertainment facility such as a lakeside cabin, but you can write off qualified entertainment at the facility.

2. Sidestep a depreciation tax trap. Under the half-year convention, your business can write off the equivalent of a half-year’s worth of depreciation for most assets placed in service anytime in 2006.

But, if the cost of assets (excluding real estate) placed in service during the last calendar quarter of the year exceeds 40 percent of the annual total cost, you must compute depreciation deductions under the less-favorable midquarter convention.

Tip: Start new equipment running before Oct. 1 to avoid any potential pitfalls.


Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/6121/two-tax-saving-moves-you-can-make-this-summer "

Leave a Comment