Q: I've heard that food expenses will be deductible beginning next year. Will itemizing be required? O.D., New York
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 own real estate that I plan to sell to my son through an installment sale. My CPA says this can't be done because we're related parties. Is this true? D.R.T., St. Petersburg, Fla.
Do you help parents, in-laws or other elderly relatives with their living expenses? Maybe you occasionally pitch in with your relative's expenses, but you aren't able to claim a dependency exemption. Reason: You don't provide at least half of that person's annual support.
If you plan on taking a business trip in the coming months and bringing your spouse along for the trip, there is a way to write off travel costs attributable to both of you, regardless of whether your spouse works for your company.
Q: My daughter graduated from college, and she gave $500 to the Red Cross after the hurricane. She probably won't itemize deductions this year. Is there any way she can deduct this donation? B.K., Red Bank, N.J.
Q: I read somewhere that employees can now spend the money in their flexible spending account after Dec. 31. My employer hasn't given any notice about this. Is that extension automatic? S.M., Cincinnati
During an audit, chances are that you won't be able to produce all the receipts, bills or other pieces of written information you'll need to back up your claims, especially if the audit comes several years after the tax year in question.
Q: I've heard that I'd have to pay tax on a home sale if I don't use the profits to buy another home. I didn't think that's true. Am I correct? O.D., New York City
Q: I have two IRAs that I established years ago. One was started for deductible contributions when I was young; the other has nondeductible contributions. Now that I'm over age 591/2, I want to withdraw some of that money. Can I withdraw money only from the nondeductible IRA? R.R.S., Key Biscayne, Fla.
You own equipment, furniture and other assets that your business could put to good use. You could sell those assets to your business, but that might drain your company's cash reserves. Plus, the sale proceeds would be taxable to you personally.