The alternative minimum tax (AMT) was originally designed to ensure wealthy individuals don’t get off scot-free. But it's now hitting a greater percentage of middle-income taxpayers. Strategy: If you can avoid the AMT by shifting tax preference and adjustment items into next year, do it. But if you can’t escape the AMT this year, accelerate income into 2010 ...
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.
Consumers spend 80% of their income within 20 miles of home. That means your marketing should cover at least a 20-mile radius.
It’s easy for employees to fall into the trap of going through the motions. Fortunately, there’s a way that employers can break the routine without breaking the bank. Strategy: Establish a program of achievement awards. If you handle things right, the awards are tax-free to employees and fully deductible by your company. What’s more, the program can increase productivity and boost morale.
Have you been setting aside funds in a Section 529 plan for your child’s college education? If your child has entered school, you can withdraw the funds tax-free to pay for qualified expenses. But you may be inclined to keep the account intact for a while longer so you can build up even more savings. Don’t do it.
Did you just get an e-mail purportedly from the IRS? Don’t believe it. Alert: The IRS is reminding taxpayers to be aware of identity theft scams using its name, logo or web site address. The idea is to trick you into disclosing vital personal information.
Q. I sold a real estate property to my son on the installment basis. Is there any tax problem if he resells it at a gain?
Set aside any notions you might have that the federal bureaucracy is inherently dysfunctional. In fact, Uncle Sam’s best agencies have a thing or two to teach private-sector employers. Here are eight lessons employers can learn from the biennial agency-by-agency ranking of federal employers by the Partnership for Public Service and American University’s Institute for the Study of Public Policy Implementation.
Deductions for employee travel expenses are allowed if they are related to business activities. Strategy: Accelerate business trips planned for January into December. This enables you to write off the travel expenses in 2009 instead of waiting until 2010.
Is it time to take health care reform into your own hands? Strategy: Investigate the benefits of Health Savings Accounts (HSAs). Although these tax-favored accounts have been slow to catch on with the public, it might make sense for your situation. If it does, sign up for an HSA whether or not health care reform is enacted.
The tax law provides a special jobs credit—called the Work Opportunity Tax Credit—if you hire workers from one of several economically disadvantaged groups. Strategy: Hire qualified workers before year-end. For instance, if you hire a worker in November and pay him or her $2,000 a month, you can claim a credit of $1,600 (40% of $4,000) this year.