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Nuggets in the new tax law: 5 strategies

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in Small Business Tax,Small Business Tax Deduction Strategies

Some of the key provisions in the new tax law signed by the president last month won’t take effect for years to come. But that doesn’t mean you should sit on your hands in the meantime.

Advice: Act now. In some cases, you’ll reap instant tax gratification. In other cases, you’ll lay the groundwork for a future tax payoff.

Here are five ways you can reap benefits from what the new tax law—the Tax Increase Prevention and Reconciliation Act (TIPRA)—has sown:

1. Take the first IRA rollover step. Beginning in 2010, any individual taxpayer will be able to convert or “roll over” a traditional IRA into a Roth IRA. Currently, this privilege is restricted to those with annual adjusted gross incomes (AGI) of no more than $100,000. Of course, you still have to pay tax on the transferred funds. But if you convert in 2010, you can spread out the tax bite over three years (2010, 2011 and 2012).

Why do it? Qualified Roth IRA payouts are 100...(register to read more)

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