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. I recently made a charitable gift in my mother’s name. Can I deduct this donation on my tax return?
The IRS raised the standard mileage rate for business and medical travel for the last six months of 2008, but not the rate for charitable-related expenses. Reason: It doesn’t have the authority to do so ...
Your company can deduct the travel expenses of its employees—including the owner—related to its business activities. Example: You might visit a client 500 miles away to pitch a business deal. In that case, you can write off the travel expenses such as air fare, lodging and 50% of your meal costs. Strategy: Change the schedule of trips planned for early next year ...
If you’re thinking of taking a course at a local college — say, to learn new computer skills — you can benefit from a tax-saving vehicle targeted at the younger generation.
Q. Please clarify the 0% capital gain rules for 2008. I’m in the 15% tax bracket. If I have a $1 million capital gain this year, is it all tax-free?
In a sign of the times, your business may want to switch its method of accounting to reflect current economic conditions. Consider changing to LIFO for 2008. This method is particularly beneficial if prices have escalated in your industry.
When you operate your business as a pass-through entity—an S corp, partnership or LLC—income and expenses are “passed through” to you on your personal tax return. The audit rate for those entities is lower than the rate for sole proprietors. A change in the form of business ownership can further reduce your audit exposure.
Generally, a business can deduct 50% of its entertainment and meal expenses that either follow or precede a substantial business discussion with a client. Since things tend to get hectic around the holidays, make your plans now. This will enable you to maximize entertainment expense deductions for 2008.