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.
The federal government’s ability to regulate tax return preparers has been successfully challenged in court. The next move is up to the feds. But that doesn’t hinder the rights of individual states to initiate their own registration programs.
Normally, the federal government requires employers to pay FUTA tax at a 6.0% rate on the first $7,000 of annual wages for each covered employee. This 6.0% tax may be offset by credits of up to 5.4%, so the net FUTA tax rate is usually only 0.6%. However, if a state borrows funds from the federal government to pay unemployment insurance (UI) benefits and defaults on repayment, the UI tax credits for employers in that state are reduced.
Have you outsourced payroll duties to a third party provider? It can save time and money. Alert: Be aware that outsourcing doesn’t relieve you of your tax obligations. The IRS could still come after your company.
Q. Can I increase Coverdell contributions for my child by having my parents make separate contributions?
On April 9, 2014, the House Committee on Small Business held a hearing titled “The Biggest Tax Problems for Small Businesses.” Chairman Sam Graves, R-Mo., pointed out several issues hampering the small business community, including higher taxes, new concerns like the Medicare surtaxes, increased complexity, uncertainty for the future and the lengthy time required to resolve issues with the IRS.
Several tax breaks for charitable donations by corporations recently expired. It’s not yet clear if any of them will be extended into 2014. But at last one special tax deduction remains on the books.
The budget deficit remains daunting, but the IRS has fewer resources to close the estimated $385 billion “tax gap.” Don’t be surprised if Congress is compelled to implement the “Buffett rule” or a similar revenue-generating provision. If you’re a high-income taxpayer, take steps now to reduce your tax exposure if the Buffett rule becomes law.
Q. My father is 88 and in poor health. He has a $80,000 capital loss carryover from 2013. Can this be transferred to a relative?
Q. I filed my tax return late but I’m getting a refund. Will I be penalized?
According to a statement from IRS Commissioner John Koskinen to the Associated Press, the IRS audited less than 1% of individual tax returns in 2013, the lowest overall rate since 2005.