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.

This year's 1040 tax return package includes the following new entries on Schedule A, Itemized deductions; Schedule B, Interest and ordinary dividends; Schedule C, Profit or loss from business; Schedule E, Supplemental income and loss; and Schedule SE, Self-employment tax:
Q. Can you still deduct the mortgage insurance premiums required to own a home?
The IRS has provided guidance for firms that qualify for the “small business credit” under the 2010 health care legislation. (IRS Notice 2010-82)

If you are filing your own 2010 return and you’re expecting a tax refund, there’s no reason to dawdle. If you file electronically and request a direct deposit in your bank account, you’ll receive your refund in less than two weeks. In contrast, filing by paper can take almost two months.

Most limits for retirement plans haven’t budged an inch in 2011. They’re exactly the same as they were last year. But some small business owners can take matters into their own hands. Strategy: Set up a “solo 401(k) plan.” If you qualify, you can effectively benefit from both “employee” and “employer” contributions to your account.

As with medical expenses, you can’t deduct miscellaneous itemized expenses on your tax return if you can’t clear an annual “floor.” But in this case, you don’t have as far to climb: You can deduct miscellaneous expenses that exceed 2% of your AGI.
Are you facing a higher-than-expected tax bill on your 2010 return? Don’t despair. It’s not too late to cut your 2010 tax bill with some savvy moves on your return. Here are six prime examples.
Make sure you make the employee-or-contractor call before you hire an employee. Don’t assume you can make the designation later. That usually won’t work. And you probably won’t even discover the problem until it’s too late to fix it—when a terminated worker files an overtime lawsuit.
Due to a myriad of new tax laws, IRS rulings and other adjustments, you’ll find numerous new twists and turns on this year’s Form 1040. Significantly, the new Form 1040 incorporates changes resulting from the Small Business Jobs Act of 2010 and the 2010 Tax Relief Act passed late last year.

Under the new 2010 Tax Relief Act, if you place qualified business property into service in 2011, you can claim 100% “bonus depreciation” for the property. That’s not a misprint. In effect, you can write off the entire cost of qualified property in just one year, with no limits on the amount!