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. My calendar-year business incurred a loss in 2010. Can it be carried back to offset 2005 income?

The new 2010 Tax Relief Act creates favorable estate tax rules for the two years extending from Jan. 1, 2011, through Dec. 31, 2012. If it suits your needs, you can also choose to use the “new rules” instead of the “old rules” for a decedent who died in 2010.

Q. My S corporation had a bad year in 2010. Could this affect my deduction for charitable contributions as a joint filer?
The IRS has announced it is expanding use of Twitter and other social media tools so it can better share information with the public. Anyone with a Twitter account can follow its news feed, @IRSnews.
On the crucial question of whether a worker is an employee or an independent contractor, you had better answer correctly. Otherwise, expect scrutiny from the IRS, which monitors worker status to make sure Uncle Sam collects all taxes due. The IRS looks at three broad categories of information to decide whether someone is an employee or a contractor.

Do you use the standard mileage rate to deduct your business vehicle expenses in lieu of accounting for every actual expense you incur? The IRS recently announced that the standard rate for 2011 was increasing, but by just a penny, to 51 cents per business mile.

The IRS has provided valuable information to individuals, businesses and charitable organizations giving assistance to victims of Japan's recent tsunami. Go to "Disaster Relief Resources for Charities and Donors."

Did you fail to qualify for the Section 199 “manufacturing” deduction in the past? Don’t give up. A business taxpayer who didn’t meet the requirements in a prior calculation might do so on a 2010 return. Best of all, the maximum deduction reached its high-water mark in 2010, so it’s more valuable than ever.

The tax law generally treats rental real estate properties as “passive activities” that are, by definition, subject to the passive activity limits on losses (the so-called PAL rules). But a property with an average rental period of seven days or fewer is not considered a rental activity for purposes of the PAL rules. So pay close attention to the length of rental periods to benefit from the exception for short-term rental properties.
New Jersey employees will be making smaller contributions to the state’s family leave fund this year than they did in 2010. Last year, workers paid 0.12% of their wages until they reached the maximum amount of $35.64 per year. For this year, the rate is 0.06%, with an annual cap of $17.76.