Q: A small nonprofit asked me to set up a Web site for their organization. If I don't charge any fees, can I deduct my services as a charitable contribution? G.R., New York, N.Y.
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.
Suppose you're in the market for a new business vehicle. You go down to the local showroom, kick the tires and try to wrangle the best deal. Normally, the dealer will agree to a trade-in value for your old car that reduces the cash you have to lay out for the new one.
Q: In the past few years, I've used my personal car for business about 75 percent of the time. Now, I'm going to buy a new car and will probably trade in the old one or sell it privately. Can I still get a depreciation deduction for the old car this year? M.C., Manchester, N.H.
Is most of your money tied up in investments? You're certainly not alone. But that may create a cash crunch if you need funds in a hurry for an emergency or an unexpected expense.
Recent tax law changes offer potentially big benefits to shareholders who want to take cash out of their closely held C corporations without sharing too much with the IRS. You can also achieve the same goal through several time-honored cash-withdrawal strategies. This special report examines today's five best ways to pull cash from your C corporation in the most tax-wise manner.
Q: My father passed away this year at age 69, and I am the sole beneficiary of his IRA. Do I have to take out all the money within five years? S.D., Massapequa, N.Y.
Medical costs continue to skyrocket. What's a small business owner to do?
In most cases, fringe benefits provided to company bigwigs are exempt from tax only if they are offered to everyone.
If you run a small company, it's hard to squeeze in enough exercise time during the week.
Q: My wife was just laid off from her job. She was told she'd receive a package in the mail about COBRA health insurance. It's been more than a week, and it hasn't arrived. Is this breaking the law? K.B., Hillsborough, N.J.?
Size often matters in the corporate world.
It's bad enough that business owners worry about corporate income tax. But your company may also face alternative minimum tax (AMT) complications.
Investors in qualified "small business" stock held more than five years can exclude 50 percent of the sale's gain. But a 28 percent capital gains tax rate continues to apply to such sales—even after last year's reduction of the maximum capital gains rate to 15 percent. That means you'll earn just a 1 percent advantage—14 percent to 15 percent—for sales of small business stock.
Q: After my father passed away, investment property he owned was destroyed by fire. The insurance reimbursement didn't cover the actual loss. Can his estate deduct the difference? E.R., Fairfield, Calif.