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.
Charitable-minded retirees who have reached age 70½ have another chance to do a good tax deed with benefits. The 2010 Tax Relief Act extends a tax break for “charitable rollovers.” Strategy: Donate funds directly from your IRA. In other words, instead of taking a taxable withdrawal and contributing the difference, you can tap into IRA funds to provide the full amount to charity. There’s zero tax due on the distribution.
There’s one tax loophole on the books that’s large enough to drive a truck through … literally. Now it’s even “bigger and better” than before. Strategy: Buy a heavy-duty sport utility vehicle for your business. Due to a provision in the 2010 Tax Relief Act, you can write off most or all of the cost of an SUV placed in service this year—without the usual restrictions.
Are you thinking about dismantling the credit shelter trust you set up years ago? Not so fast. There are still plenty of reasons for keeping the trust. The new estate tax rules in the 2010 Tax Relief Act that seemingly discourage the use of credit shelter trusts are scheduled to “sunset” after 2012.
The rules for substantiating business car deductions are hard to navigate. What’s more, it’s a hassle to comply with all the requirements. Strategy: Follow the IRS-approved route. If you veer off course, deductions may be disallowed. The IRS tends to take an extra-long look at deductions for business vehicles.