If you recently acquired or started a new business, or if it took several years for your company to become profitable, you may be ready to put more money into employee benefit plans like a qualified retirement plan. Strategy: Get your retirement plan going before the end of the business tax year. This will entitle your business to a tax credit—a dollar-for-dollar reduction of the company’s tax bill—for plan startup costs.
Suppose that your child in college plans to move off-campus next semester. At the same time, you’re looking to buy real estate to shelter income from tax. This could be an opportunity to kill two birds with one stone.
Suppose your employees regularly incur business expenses that aren’t reimbursed by your company. For example, they might personally pay for business travel or tools. In that case, there’s a way to save income tax for employees while cutting payroll taxes for your company.
There’s a way to simplify recordkeeping for business travel expenses. Use IRS-approved per diem rates. Your company can rely on this shortcut for lodging and meals and incidental expenses of employees on business travel.
Now that autumn has arrived, it’s time to begin “harvesting” capital gains or losses from selling securities held in taxable brokerage firm accounts.
The maximum Section 179 deduction allowed under the tax law is currently only $25,000 for tax years beginning in 2015. Beware of a special tax trap for property placed in service in the last quarter of the year.
With the college football season underway and basketball looming, you may root hard for your favorite teams. But you can do more than show vocal support from the sidelines. Donate funds to a “booster club” or similar program. This entitles you to a charitable deduction for all or part of the donation—even if the gift provides you with preferred ticket status for athletic events.
It’s not unusual for business owners and other company bigwigs to agree to deferred compensation (“deferred comp”) arrangements. In short, you earn the money now, and it’s not available until later. Under the tax rules for deferred comp, you may owe tax on money you haven’t received yet. But there’s an intriguing solution.
As things stand now, the tax breaks for buying depreciable business property have been watered down for the 2015 tax year. Consider leasing business equipment instead of buying it.
A roundup of recent tax news about filing deadlines, ACA overpayments, affording higher education … and Uber.