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.

For Anthony Armatys, a job with communications company Avaya was the best job he never took. The Illinois man has pleaded guilty to theft by deception after he failed to report that Avaya, based in Basking Ridge, had deposited $469,000 worth of pay into his checking account, despite the fact that he never put in a day’s work for the company.

Q. What is the Illinois Employee Classification Act? I’m not sure if it applies to my company.

The GAO recently released a detailed report with a set of recommendations to address the persistent, widespread problem of employer misclassification of employees as independent contractors. The report urges the DOL and the IRS to step up enforcement efforts, so now's a particularly opportune time for employers that have classified any workers as independent contractors to carefully review those decisions.

Q. One of our employees recently got married. She’s informally going by her new last name, but she hasn’t changed her name on her Social Security card and doesn’t plan to. We submit all payroll information using her maiden name. Do we face any liability?

Q. Our company is purchasing used equipment from one of our suppliers. Can we deduct the full cost under Section 179?

Typically, the income you receive from the sale of real estate or other property is taxable in the year it is received. However, there’s a way you can spread out the tax bite on a profitable sale. Strategy: Sell property on the installment basis. As long as you receive payments in more than one year, you pay tax only on the portion of each payment attributable to your gain plus interest.

Generally, your company may deduct bonuses in the year they are paid. For employees, the bonuses are taxable in the year they are received. For instance, you must pay out bonuses to employees before Jan. 1, 2010, to claim deductions for 2009. However, there’s a special rule for accrual-basis companies ...

Adjust your withholding allowances on Form W-4 if you overestimated the amount of tax you needed to have withheld this year or if you didn't pay enough tax during the year through quarterly installments or income tax withholding.

Under Section 179 of the tax code, your business may elect to “expense” (i.e., currently deduct) the cost of qualified assets up to an annual limit.. Strategy: Acquire and place business assets in service before year-end. After 2009, the maximum deduction is scheduled to revert to $125,000 (plus indexing for inflation).

Q. Our business is interested in using a “common paymaster.” Can we report all the payroll tax deposits on one form?