The amount you transfer to a Section 529 plan for college savings on behalf of a beneficiary qualifies for the annual gift-tax exclusion. Strategy: Front-load your contributions to a Section 529 plan. The tax law allows you to give the equivalent of five years’ worth of contributions up front with no gift-tax consequences.

Your company may benefit from a special “bonus depreciation” deduction if it acquires business property this year. The bonus depreciation deduction is equal to 50% of the cost of qualified new (not used) assets placed in service in 2009. What’s more, you may be able to combine bonus depreciation with the Section 179 election.

Have you checked out the IRS on YouTube? Now you can tune in to videos that explain some of the key tax breaks included in the new economic stimulus law. Simply go to www.youtube.com/irsvideos to view the current play list.

The alternative minimum tax (AMT) was originally designed to ensure wealthy individuals don’t get off scot-free. But it's now hitting a greater percentage of middle-income taxpayers. Strategy: If you can avoid the AMT by shifting tax preference and adjustment items into next year, do it. But if you can’t escape the AMT this year, accelerate income into 2010 ...

Q. My company may use the salary reduction plan you referred to in the article "Use salary reduction plan to lower tax." Can the plan be based on a percentage of salary?

It’s easy for employees to fall into the trap of going through the motions. Fortunately, there’s a way that employers can break the routine without breaking the bank. Strategy: Establish a program of achievement awards. If you handle things right, the awards are tax-free to employees and fully deductible by your company. What’s more, the program can increase productivity and boost morale.

Have you been setting aside funds in a Section 529 plan for your child’s college education? If your child has entered school, you can withdraw the funds tax-free to pay for qualified expenses. But you may be inclined to keep the account intact for a while longer so you can build up even more savings. Don’t do it.

Did you just get an e-mail purportedly from the IRS? Don’t believe it. Alert: The IRS is reminding taxpayers to be aware of identity theft scams using its name, logo or web site address. The idea is to trick you into disclosing vital personal information.

Q. I sold a real estate property to my son on the installment basis. Is there any tax problem if he resells it at a gain?

Suppose you converted your IRA to a Roth IRA just before the bottom fell out of the stock market. Based on the inflated value of the account on the conversion date, you were staring down the barrel of a tax disaster. But now you see signs of a market rebound. And you’d like to take advantage of the Roth IRA setup for all the same reasons that attracted you to it in the first place. Strategy: Reconvert your IRA.

Deductions for employee travel expenses are allowed if they are related to business activities. Strategy: Accelerate business trips planned for January into December. This enables you to write off the travel expenses in 2009 instead of waiting until 2010.

Is it time to take health care reform into your own hands? Strategy: Investigate the benefits of Health Savings Accounts (HSAs). Although these tax-favored accounts have been slow to catch on with the public, it might make sense for your situation. If it does, sign up for an HSA whether or not health care reform is enacted.

The tax law provides a special jobs credit—called the Work Opportunity Tax Credit—if you hire workers from one of several economically disadvantaged groups. Strategy: Hire qualified workers before year-end. For instance, if you hire a worker in November and pay him or her $2,000 a month, you can claim a credit of $1,600 (40% of $4,000) this year.

If you missed out on the popular cash-for-clunkers program this summer, you can still qualify for big tax benefits for an older vehicle by donating your “clunker” to charity. Instead of trading in your vehicle, simply give it away to a qualified charitable organization. This entitles you to a deduction on your ’09 return.

Q. We may have to pay environmental cleanup costs as a result of an investigation. Can we write off all of the costs on this year’s return?

Suppose your employees regularly incur business expenses that are not reimbursed by your company. For example, they might personally pay for business travel or tools. If that’s the case, there’s a way you can save income tax for employees while cutting employment tax for your company: Set up a salary reduction plan.

The IRS now requires many small business owners to use its Electronic Federal Tax Payment System to deposit employment taxes. Your business must use the electronic method if it has aggregate tax deposits of more than $200,000 ... If your company doesn’t comply, it may be assessed a 10% excise tax for failing to deposit taxes on time—even if the taxes are deposited in a timely manner by other means.

A recent government study showed that the average small business overpaid its taxes by $11,638. That’s sad enough. But sadder still is the fact that the tax code is actually written to favor small businesses like yours.

You may have to travel away from home on business for an extended period of time. Of course, you’d rather spend weekends back with your family, but it might cost too much to fly back and forth. Strategy: Have your company reimburse you for the air fare. As long as you provide adequate accounting of expenses, the reimbursement is deductible by the company and tax-free to you.

Q. After her divorce, our daughter and her two small children moved into our home. Can we claim all three as our tax dependents?

At least there’s a silver lining in the recession: For the first time in more than three decades, the Social Security wage base isn’t expected to increase next year. The actuaries at the Social Security Administration are predicting that the wage base will remain at $106,800 for 2010 and even beyond into 2011.

Have you seen the ads on TV, or heard them on radio, promoting low-cost payoffs to the IRS for unpaid federal tax debts? Chances are, if something sounds too good to be true, it probably is. And if you’re waiting for the refund from an amended return, it may take awhile longer.

Q. My father is contemplating a reverse mortgage. Will he have to pay tax on the deal?

If you’re buying a home, complete the deal before Dec 1. Under a new law provision, you may be able to claim a credit equal to the lesser of $8,000 or 10% of the purchase price. For this purpose, a “first-time homebuyer” is defined as someone who has not owned a principal residence for the three years prior to the purchase.

The rules for home-office deductions are particularly tough for corporate employees. Even if you legitimately use a home office for business purposes, you may not be entitled to a deduction. It doesn’t matter if you’re the owner of the company. Strategy: Rent the office to the company, which can deduct the rent payments as a business expense. You must pay income tax on the rent payments, but won’t owe employment taxes.