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.

Are you a rabid fan of the athletic teams at a local college or your alma mater? Here’s a way to pocket a nifty tax break while supporting the school’s gridders, cagers or other athletes: Donate funds to a college booster club or a similar program. That way, you can deduct all or part of the payment as a charitable contribution.

Have you passed the Social Security wage base of $106,800 for 2009? Once you do, you save 6.2% in Social Security tax on every dollar of wages. Instead of pocketing the cash, you might allocate at least part of it to a 401(k) or other retirement plan.

A new Tax Court decision could produce a better tax result for many owners of LLCs and partners in LLPs. Strategy: Use a loss from an LLC or LLP to offset other highly taxed income. Previously, it was presumed that such losses usually could be used only to offset income from other “passive” activities. But the new case has opened the door to bigger tax savings.

Time is running out on a unique tax break for older taxpayers with charitable intentions. Strategy: Donate funds directly from your IRA. Instead of taking a taxable withdrawal and contributing what’s left after taxes, give the full amount to charity. There’s no tax due on the distribution.

The annual limit for dependent care expenses in flexible spending accounts (FSAs) has remained at $5,000 since the accounts were authorized back in 1986. Now momentum is building in Congress for an increase.

Q. Our company is hiring temporary workers for a big upcoming job. Do we have to treat them as employees?

If you sent a child to college this fall, you have a chance to cash in on an enhanced tax break for higher education. The new “American Opportunity tax credit,” formerly called the Hope Scholarship credit, is now available to more higher-earning taxpayers. But the improvements are only temporary.

Time is running out on a tax break for some small biz owners. The IRS notes that self-employed individuals have until Oct. 15, 2009, to carry back a net operating loss (NOL) from calendar year 2008 for up to five years instead of the usual two years.

True or false: Employees are either creative or they’re not—creativity isn’t a skill you can teach. False. Managers can play a key role in creating an environment in which employees will want to look for new ideas. Share this article with your supervisors to help tap employee creativity.

It soon will become simpler to provide tax return information requested on financial aid applications. The IRS plans to set up a new system where you will be able to visit a secure web page, verify your identity and then retrieve the essential info needed ...