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.
Q. My car was damaged in an accident. I use the car about 80% for business, but I was on a personal errand. Can I still deduct the repair cost?
Do you want to help a local athletic organization that benefits your children? Join the booster club for an amateur sports program. You can likely write off the difference between the club dues and the value of the benefit received. But beware: The IRS is cracking down on inflated deductions.
Maybe you’re not Bill Gates or Donald Trump, but you’ve worked hard to build up a small business empire of your own. Now that you’re closing in on retirement, you’d like to preserve most of your assets for your family without paying an arm and a leg in taxes. Strategy: Set up a dynasty trust.
The IRS still needs to improve the quality of its customer service, according to a report issued by the Treasury Inspector General for Tax Administration. The report cited lengthy wait times and scheduling deficiencies as two key problem areas. But the news isn’t all bad.
Employer-provided cell phones are no longer a taxable fringe benefit. That means employees don’t have to pay federal income tax on any personal use of their phones—and you can quit keeping track of employees’ personal-use minutes. Read the new IRS guidance here.
Do you need an “angel” to help your business fly? An expiring tax law provision may give you the wings. Strategy: Offer qualified small business stock (QSBS) to investors. As long as your company meets certain requirements, an investor may be able to exclude up to 100% of the capital gain from a subsequent sale of the stock.
You’ve been warned: The IRS has developed a new “Audit Techniques Guide” for agents examining business consultants. It pinpoints several critical issues such as misclassification of independent contractor status, online bartering transactions and shifting of income to corporations.
The IRS has announced it intends to eliminate the simplified “high-low method” that can currently be used to substantiate business travel expenses for lodging, meals and incidentals.
The IRS is now using state real estate records to help investigate intra-family gifts that haven’t been reported on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The form must be filed for transfers of property valued above $13,000, even though the current lifetime gift tax exemption is $5 million.
The Social Security Administration has announced that the taxable wage base for the Social Security portion of FICA will increase to $110,100 in 2012. That’s a 3.1% hike over the 2011 wage base of $106,800.