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.

Health insurance costs continue to skyrocket without any end in sight. As a result, companies both large and small are exploring alternate means to cover their employees.

Question: I'm retiring before the end of the year at age 64. My accountant says I've earned too much salary this year to receive any Social Security benefits. I thought the earnings test was eliminated years ago. If not, is there anything I can do now? Or do I have to work longer? — J.M.B., Boise, Idaho

As you thumb through the mail one day, an unassuming letter catches your eye. Return address: The IRS. You nervously tear open the envelope and your worst fears are confirmed: The IRS has chosen your return for a correspondence audit.

Q: I'm thinking about retiring early and moving to a foreign country to avoid U.S. income taxes. Will I still be taxed on retirement income from my pension plan and IRAs? J.L.S., Spokane, Wash.

Q: I bought a second home computer recently because my new job requires communication at all times, and my kids are always on our other computer. I use the new machine to interact with clients from home. Since my employer is all for it, can I deduct the computer's cost? M.L.P., New York

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.

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.