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Small Business Tax Strategies

The 2003 tax law spawned dozens of great tax strategies, plus a couple of duds.

One lame concept gaining traction these days: Reduced individual income tax rates make your tax-deferred retirement plan an inferior retirement savings vehicle. Instead, the story goes, you should stash your retirement money in a taxable account at your friendly brokerage firm.

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If parking space is at a premium near your building, you may pay for employees to park their cars in a nearby garage or lot.

If you set up a qualified fringe benefit plan, your company can deduct those parking costs, and the benefit is tax-free to the employees. Unfortunately, your company may pay a pretty penny for its local parking privileges.

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File more business tax forms electronically.

 

IRS shifting jobs from clerical to crackdown.

 

Educate yourself on Health Savings Accounts.

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Q: I heard that the increased Section 179 allowance goes away in 2004. Is that true? V.C.R., Miami, Fla.

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Q: I own a residential real estate building that I bought in 1995. The building is 40 years old and needs a new roof. If I have a new roof installed this year, can I deduct the entire cost in 2004? M.S., Raleigh, N.C.

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In a competitive business environment, your company may be hard-pressed to keep up with the Joneses. Often, that requires sinking extra cash into research that may or may not result in profitable products.

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Taxpayers pondering a question, searching for a form or seeking their refund can now go to one place on the IRS Web site: 1040 Central.

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Did you receive a state or local tax refund in 2003?

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If you’re like most married taxpayers, you’ll sit down to your 1040 this year and dutifully check off the "Married filing jointly" box without a moment’s thought.

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Tap into your IRA without penalty pain


Give boost to house-buying child

 

Unlock tax break for Roth IRAs

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