Q. Due to an expensive surgery, I’m over the medical deduction limit in 2012. Can I pay additional expenses personally instead of using my FSA? K.C., Bethesda, Md.
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 son, who graduated college, lost his job last year and moved back home. Can we still deduct him as a dependent?
Are your employees adequately protected in the event they suffer a long-term illness? Consider providing long-term care insurance as a company fringe benefit. As long as you meet the tax requirements, the premium payments are deductible by your company and tax-free to your employees.
Q. If I start a sideline self-employed business, do I still have to pay personal payroll tax if I’m over the Social Security tax wage ceiling in 2012?
Surprisingly, you may end up better off this year by having your corporation forgo a tax deduction. Strategy: Make this a “dividend year.” In other words, instead of receiving income in the form of tax-deductible wages, arrange to have the company pay out dividends to yourself.
If you need cash in a hurry and can’t afford to pay much tax, you may have more options than you think. Strategy: Consider a withdrawal from a Roth IRA. Despite the common perception, nonqualified distributions from a Roth aren’t fully taxable. In fact, they might not be taxable at all!