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.

It's rare when you can have your tax cake and eat it too. But a new private letter ruling issued by the IRS gives certain older business owners a generous slice. It allows them to preserve the tax benefits of a "grand-father election" made over 20 years ago.

Despite the chummy-sounding acronym, PALs (short for passive-activity losses) are anything but friendly to taxpayers, particularly those who invest in real estate. Fortunately, you can gain more tax saving value from your PALs with some astute tax planning.

Eureka! Your company has created a new gizmo that's a vast improvement on the competition's product. Once you work out the bugs, you expect to patent the invention to protect your interests. Then, you hope it will start selling faster than hot cakes.

Q: I plan on making charitable donations to several charities in other countries, including Israeli bond funds. Can I deduct those donations on my tax return? I.Z., Bethpage, N.Y.

Q: My main computer is a laptop that I use mostly for business in my home office. But I also use the laptop personally and let my kids play games on it sometimes. Will this cost me a home-office deduction? M.R., Danville, Ill.

When selling their home, joint filers can shelter up to $500,000 in home-sale gains from taxes, as long as they have owned and used the home as their principal residence for at least two years during the five-year period ending on the sale date.

Q: My daughter is switching jobs in a few weeks. She's accumulated about $20,000 in her 401(k) plan. Does her employer have to automatically roll the money into a Roth IRA? I read something about that issue recently. G.P., Hoboken, N.J.

If you're challenging the IRS on a tax-return issue, pay the tax you owe now. Don't wait until the dispute is settled.

Q: I bought a car this year that I used for my sales rep job. My company reimburses me for travel but not the interest I'm paying on a car loan. Can I deduct the interest as a business interest expense? E.L., Islip, N.Y.

For investors relying on variable annuities during their retirement years, it's no fun watching the stock market intermittently spike and then plummet. When the market is booming, so is your investment. But your return suffers when the market takes a nose dive.