Small Business Tax

Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?

Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.

Q. My wife worked for three months this year before she was laid off. Can I deduct all our health insurance costs because I’m self-employed?

The new health care reform law finalized on March 25—the Patient Protection and Affordable Care Act—includes sweeping changes for both employers and individuals. Although some new-law provisions take effect right away, most are prospective. But even future changes can affect tax planning this year.

A federal judge in Northern California has granted preliminary approval to a settlement reached between U.S. Remodelers Inc. and 270 current and former workers who sued the company for wage-and-hour violations.
Q. One of our employees recently took a company-issued BlackBerry with him on a business trip. The employee lost the BlackBerry while out on the town, and the company would like to have him pay for a replacement. Can we deduct the cost of a replacement BlackBerry from his paycheck?

The IRS has eased the filing requirements for the Report of Foreign Bank and Financial Accounts, commonly known as the “FBAR,” for 2009 and earlier tax years. (IRS Announcement 2010-16 and Notice 2010-23) If you’re doing business in the United States, but are not a U.S. citizen or resident, you may be off the hook.

The IRS has eased the filing requirements for the Report of Foreign Bank and Financial Accounts, commonly known as the “FBAR,” for 2009 and earlier tax years. (IRS Announcement 2010-16 and Notice 2010-23) If you’re doing business in the United States, but are not a U.S. citizen or resident, you may be off the hook.

Instead of making an outright sale of commercial or investment property, the tax law enables you to “swap” it for like-kind property without paying any current tax. However, things aren’t usually so cut-and-dried in the real world. For one thing, it’s unlikely the potential buyer of your property will own any real estate you desire. Strategy: Use a “qualified intermediary” to facilitate deals.

Companies everywhere are scrutinizing their payrolls and full-time employee head counts with an eye toward cost-saving measures ... and independent contractors. Just be aware that you'll need a concrete policy for managers to steer clear of the IRS and legal headaches in hiring outside workers.

Company.com, an information and lead generation portal for small and midsize businesses, has provided a list of 10 tips for helping businesses avoid IRS tax audits. Take these suggestions to heart. If you follow them diligently, you can dramatically reduce exposure to an audit.

The new HIRE Act provides a couple of key payroll tax breaks for employers that hire new employees. If your company hires a “qualified employee,” the business is exempt from the employer’s 6.2% Social Security tax portion of the FICA tax on the employee’s wages for the rest of 2010. Plus, the company is entitled to a new tax credit if it keeps the worker employed for at least 52 consecutive weeks.