Are you holding onto any stocks that are worthless? If so, you may be able to salvage some tax relief on your 2011 return. Strategy: Claim a capital loss deduction for worthless stock. The loss can offset capital gains plus up to $3,000 of high-taxed ordinary income.
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.
Are you short on cash for an IRA contribution this year? Uncle Sam may give you a “loan.” Strategy: Use your federal income tax refund to fund an IRA contribution.
Suppose you’ve carved a subsidiary out of your main operation, so now you officially own two business entities. Potential problem: If certain employees work for both companies, you could be paying more employment tax than you’re required to under the law. Strategy: Assign a “common paymaster” to handle employment taxes.
Your business is part of your legacy, so you probably don’t want the company’s building to be sold and bulldozed right after you die. However, your heirs may be strapped for cash if they have to pay federal estate tax on the value of the inherited business. Strategy: Point out the special use valuation break.
The debate over the constitutionality of the massive health care legislation enacted in 2010 continues. It’s not certain if most of the provisions will kick in as scheduled ... or ever. Strategy: Take a second look at Health Savings Accounts (HSAs). They may be a tax-smart way for you to handle your medical expenses.
Just when it looked darkest, Congress revived a tax break for employees, at least for the short term. New legislation enacted late in 2011 temporarily extends the “payroll tax holiday” for two more months. And Congress is already working on an extension for the remainder of 2012.