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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.

After a late flurry of activity in Congress, President Obama inked the new Small Business Jobs Act on Sept. 27. This new legislation provides a bushel of new tax goodies that can benefit small business owners this holiday season. Here are eight ways to cash in on the tax breaks from Uncle Sam:
The federal government has announced  reductions in the “per diem rates” for its 2011 fiscal year. These rates may be used by employers in lieu of requiring employees to keep track of every business travel item. Strategy: You can still use the higher rates through Dec. 31, 2010. If it suits your purposes, postpone use of the lower rates until Jan. 1, 2011.
When it makes sense, you can shift income and expenses at year-end to your tax advantage. Here are 10 ways to trim your personal tax bill in 2010.
If you’re serious about your gambling activities, you may find yourself in a better tax position than if you were a casual gambler. Reason: A professional gambler can deduct losses up to the amount of winnings on Schedule C instead of claiming them as miscellaneous itemized expenses on Schedule A. But you just can’t call yourself a “pro” ...
You might decide to reduce your taxable estate through lifetime gifts. But you’d also like to avoid a hefty gift tax on amounts above the $1 million lifetime gift tax exemption and annual gift tax exclusion ($13,000 per recipient in 2010). Consider “net gifts” to family members: The recipient pays any gift tax due on the transfer.
Q. I have three IRAs and must start taking minimum required distributions in 2010. Do I have to withdraw from all the IRAs?
The IRS plans to turn up the heat on smaller corporations, based on a new report from the Treasury Inspector General. Beginning in 2011, the IRS intends to conduct 22,000 line-by-line exams of 2009 returns of random corporations with $50 million or less in assets.

Raleigh, N.C.-based Morganite Industries has reaped a 178% return on the investment it made to put its benefits enrollment, communication and data exchange online. It took only seven months for the 2,500-employee organization—which provides tax, benefits, health, safety and financial services for its parent company, Morgan Crucible—to recoup its initial investment.

At least you can be certain that Social Security taxes won’t be going up in 2011. Because a cost-of-living adjustment (COLA) for Social Security benefits isn’t going to happen for next year, the ceiling for the 12.4% Social Security tax will remain at $106,800 of wages and/or self-employment income for 2011.
As the end of the year approaches, investors can cash in some tax-saving opportunities. Here are seven prime examples: