Staying one step ahead of the IRS isn't easy for most small businesses. One wrong step—a forgotten form, a lost receipt—could invite Uncle Sam's wrath.
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.
Treasury Department honchos have revived an idea that seemed dead just six months ago: consolidating many tax-preferred savings plans under two basic savings vehicles, lifetime savings accounts and retirement savings accounts.
Many business owners enter into "split-dollar" life insurance arrangements, in which the employer and employee share the cost of life insurance. But the IRS recently changed the rules, making those plans less attractive.
One added reason that it's hard to watch your children leave the nest is that you lose a coveted dependency exemption. In 2003, the exemption equals a $3,050 subtraction from your taxable income.
With interest rates near historic lows, your company may want to take advantage of the low cost of capital by issuing debt.
Q: We are building a home that's nearly completed and have contracted to sell our current home. But now, our plans have changed. If we sell the home we're building, will we owe capital gains tax? B.L., Myrtle Beach, S.C.
Q: I have an outstanding loan for my oldest child's college tuition. I've received some credit card offers with lower rates than the existing college loan. Should I take one to pay off the college loan? K.H., Binghamton, N.Y.
Q: We own S corporation shares bought more than 12 months ago at $12 per share that now have a market value of $25 per share. If the shareholder dies, is the basis adjusted to market value at death? T.M., via e-mail
Q: I'm buying rental property with my brother for $425,000. Although we are joint owners with 50 percent ownership rights each, I'm putting $50,000 down, and he is putting down only $30,000. Will I be taxed on more of the rental income? S.S., via e-mail
Q: I liked your recent story on Section 529 college savings plans. (See 11/17/03 issue.) It made me wonder: I'm thinking about going to law school in a few years. Can I set up a Section 529 plan for myself? S.M.R., via e-mail