Q: I run two sole proprietorships out of my house. Do I need to use separate rooms for each business if I want to claim home-office deductions? W.D., Smyrna, Ga.
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.
When meeting with your accountant this tax season, don't be surprised if he or she tries to sell you on a new benefit-
management program or other service.
March 15 isn't just the deadline for corporations to file 2003 calendar-year income tax returns. It's also the deadline for calendar-year C corporations to switch to S corporation status for 2004.
If you receive a phone call from someone who asks for personal financial data and claims to be from a federal agency, such as the IRS, ask that person to put the request in writing.
If you and other co-owners operate your business as a multimember LLC, you may already know to file a partnership return on Form 1065. Each owner is treated as a partner for federal income tax purposes, so each receives a Schedule K-1 with his or her share of the LLC's 2003 business income, deductions and credits. You report those figures on your 2003 personal return.
Calendar-year 2003 is over, and you can't do anything to change it. But the book isn't closed on tax year 2003.
If you run your business as a husband/wife partnership, you're forced to fill out a complicated Form 1065 (U.S. Return of Partnership Income) every year. But if you live in one of the nine "community property" states (see list at left), we have good news for you
The March 15 deadline for filing a 2003 corporation tax return is approaching quickly. (See tax calendar, page 5.) Rather than slapping together your tax paperwork at the last minute, punt. You can earn a six-month extension by filing Form 7004, Application for Automatic Extension of Time To File Corporate Income Tax Return, and paying what you estimate you owe.
Before you send off your 2003 tax return, make sure you didn't overpay the required amount of FICA taxes. For 2003, the Social Security rate is 6.2 percent on the first $87,000 in wages. The 1.45 percent Medi-care tax rate applies to all your wages. Together, those make up the 7.65 FICA tax.
Thanks to the recent Bush tax acts, you can deduct on your 2003 tax return either 30 percent or 50 percent of the cost of qualifying new assets that you bought and placed in service last year. The remaining amount is then depreciated using standard tax rules.