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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. For the first time ever, I plan to attend a stockholders’ meeting at a distant location. Can I deduct the travel costs?

If you’re the sole owner of an S corporation, you call the shots. So you can set the salary figures for all employees, including yourself, as long as you stay within the law’s boundaries. Strategy: Keep your annual salary on the low side. At year’s end, you can pay yourself dividends out of profits. Why would you skimp on your own salary? You avoid employment taxes on cash distributions from your company.

Q. Currently, we require each individual employee to fill out his or her own time sheet. But we’re considering a new format that lists all employees on one time sheet. Is this legal? Or should each employee’s time sheet be kept confidential?

The monumental new health care legislation imposes a new Medicare tax on investment income collected by high-income individuals. However, the new tax doesn’t kick in until 2013. Strategy: Plan ahead to reduce or avoid this extra tax. Conversely, if you wait a couple of years to make your moves, it may be too late. Here are five long-term ideas:

Q. Our company would like to hire interns to work in our office this fall, but we’re not sure if we have to pay them. What are some guidelines as to whether or not we need to put them on the payroll?
Just before its July 4 recess, Congress extended a deadline for the first-time homebuyer credit. Now the credit is available for a closing by Sept. 30, 2010 (instead of June 30), for contracts signed by April 30.
New legislation working its way through Congress could put a halt to a popular estate-planning technique. The crackdown limits the ability to avoid gift tax on transfers to a grantor annuity trust (GRAT). In particular, the proposed legislation no longer allows taxpayers to "zero out" a GRAT.
Do you own residential property that’s been producing a marginal profit or a loss the past few years? Short of raising the rent, you’re fighting an uphill battle as your expenses continue to grow each year. Surprisingly, many landlords don’t claim all the deductions they are entitled to. Here are the “top 10” deductions on the list:

Many small business owners get stuck in a marketing rut—same tactics, same media outlets, same budget. This could be the year for a big shake-up. To really expand your marketing horizons, consider strategies you’ve never used before. Here's a checklist of tactics that have worked well for many small businesses:

Q. In a recent article ("Exclude tax on home installment sale"), you said that installment sales must take place over two years. But isn’t the rule only that the payment must be received in the following year?