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.

New Jersey finished next to last in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The SBEC annually assesses the tax climates for business and entrepreneurs in the 50 states and the District of Columbia.

North Carolina finished in the bottom third of states ranked in the Small Business and Entrepreneurship Council’s (SBEC) Business Tax Index for 2009. The Tar Heel State placed 38th overall, well below neighboring South Carolina (11th), Tennessee (13th), Virginia (16th) and Georgia (19th).

Soon after Gary Lizalek was hired at a Wisconsin medical firm, he informed the company that he believed, as a matter of religious faith, that he was three separate beings. The company fired all three Lizaleks. He sued, saying the company failed to accommodate his religious beliefs.

All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past. Strategy: Add an “age-weighted” feature to a profit-sharing plan.

Treasury has formally released its explanations of President Obama’s tax proposals for the 2010 fiscal year. The long-awaited “Green Book” provides vital in-depth information for both individual and business taxpayers. The proposed tax changes hit hard: Revenue-raisers aimed at individuals total more than $736 billion over 10 years while business tax cuts amount to $71 billion over the same period.

A little-noticed change in the new economic recovery law could have a major impact on high-income investors. Previously, most munis provided tax-free income, but certain types of bonds, known as “private activity” bonds, could trigger alternative minimum tax (AMT) complications. The new law temporarily eliminates the AMT problem.

You might not be able to pay for additional benefits during a recession, but some organizations are finding ways to plump their menu of perks at no cost. Here are some practical, easy-to-implement ideas for you to try:

Q. I plan to lease a car for business travel this year. Is there a limit on the amount I can deduct?

Umpqua Bank makes it easy for its 1,700 employees to comply with a strict, professional dress code: It lends them money to buy clothes. Since 1996, the bank, with 150 branches, has advanced money to any employee who asks for it—up to $1,000 a year—to spend on work clothes.

The 2008 housing law put new restrictions on a popular tax technique for homesellers who convert a second home into a principal residence. Beginning in 2009, you may be taxed on the gain attributable to the “nonqualified use” of the home. But you still may escape unscathed through a little-noticed loophole.