The IRS may hold an individual personally liable for a “willful” failure to pay employment taxes on time. Even a hands-off business owner could be socked with a seven-figure tax bill, as the following case shows.
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 son graduated college in 2007 and was our dependent. He worked full time in 2008, but he didn’t get a stimulus rebate. Wasn’t he entitled to one?
Q. Regarding your recent article, Any tax impact if I don't take IRA distributions in '09, I question why you would pay income tax quarterly when the RMD is taken in the last quarter. Is your answer accurate?
The New Jersey Legislature’s Office of Legislative Services has clarified that the state’s new family leave law isn’t to be funded with taxes on retirees’ pension payments.
If an elderly parent or in-law is having trouble making ends meet, you might help him or her pay the rent or other expenses. In return, Grandma or Grandpa may gladly volunteer to watch your children while you and your spouse work. Unfortunately, you probably can’t claim a dependency exemption for this trade-off, but you still can reap a big tax benefit from the arrangement.
Under the new economic stimulus law—the American Recovery and Reinvestment Act of 2009—you can deduct state and local taxes paid to purchase a new vehicle. The rules seem straightforward enough, but watch out for a few interesting twists and turns. Strategy: Do the tax homework before you buy a new set of wheels.
Q. I haven’t received my economic stimulus check yet. Will this be mailed out soon?
Have you been victimized by an investment Ponzi scheme like Bernie Madoff's? A new IRS ruling says you can deduct such a loss as a theft loss rather than a capital loss.
A savvy real estate owner can postpone tax by selling property on the installment sale basis. But you may be able to postpone the tax bill even further. Strategy: Consider using a “wraparound sale.” In effect, you offer to carry the buyer’s note to facilitate the sale of the property.