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.

A taxpayer who qualifies as an “innocent spouse” may be entitled to relief from tax liability on a joint return. But the IRS often questions claims of innocence. To qualify for relief, it has imposed the following requirements:
If you’ve decided to take in a child under a foster care arrangement, the payments you receive from the government or other qualified agency are generally tax-free. But the tax breaks don’t stop there for generous foster parents.
As the owner of a small business or one of your company’s top employees, you may be granted stock options as part of your compensation package. What type of options are you receiving? It can make a big tax difference.
Q.  In a recent article, you talked about energy credits in your home. Can’t you get credits for costs at a plant?
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.