6 tax-savvy moves for small business filers

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in Hiring,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

The deadline for filing calendar year 2007 tax returns for corporations—generally, March 17, 2008—is right around the corner. With a little effort and a lot of savvy, you can maximize the tax benefits for your small business. Here are six prime examples:

1. Speed up equipment write-offs. Under Section 179 of the tax code,you can elect to “expense,” or currently deduct, up to $125,000 of equipment costs and other business assets placed in service in 2007. The limit was increased from $112,000 by the small business law enacted last year. (It increases to $128,000 for 2008.)

The Section 179 deduction can eliminate a multitude of sins. For instance, depreciation deductions under the Modified Accelerated Cost Recovery System (MACRS) are generally reduced if the cost of the assets placed in service during the last quarter—Oct. 1 through Dec. 31—exceeds 40% of the cost of the assets placed in service for the whole year. But assets e...(register to read more)

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