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'm selling my house this year and moving into our beach condo. I'll also eventually sell the condo, so I want to avoid paying tax on that sale, too. Can I call both of these houses my principal residence this year? T.H., Wilmington, Del.

Q: You've explained the wash-sale rule in the past. But I bought a stock that I had sold at a loss less than 30 days earlier. I did so because it suddenly rebounded and I couldn't wait any longer. If I sell the stock again, but this time at a gain, is my basis adjusted for the prior loss? N.W., Deal, N.J.

Normally, you must depreciate the cost of business or commercial real estate over 39 years. In comparison, you can depreciate residential rental property much faster over 27.5 years.

Unless you're a CPA or a tax nerd, the term MACRS can be daunting. It stands for Modified Accelerated Cost Recovery System, which is the standard federal-income tax method for depreciating the cost of your business assets.

Pity the late Albert Strangi. He tried to save his family from estate taxes by transferring the bulk of his assets into a family limited partnership (FLP). But the IRS stepped in and nixed the tax benefits.

It's not very often that the IRS lets you pull down tax-free income. So, take advantage of such opportunities when they pop up.

Q: My wife and I are getting divorced. I own mutual fund shares worth about $150,000, which are all in a taxable brokerage account in my name. If I transfer some of the shares to her as part of the divorce, do I have to pay tax on the gain over basis? A.R., Monsey, N.Y.

Q: I was interested in your special report on business education. (7/11/05 issue) Both of my kids work for me as employees and also attend college. I found a course on family business dynamics at a different college that I'd like my kids to take. If I pay for the course, can I deduct the cost? A.C.

Q: I have a carried-over capital loss of $6,500 from last year. Can I use this loss to offset some of my income from a required IRA distribution? S.B., Toms River, N.J.