There’s one tax loophole on the books that’s large enough to drive a truck through … literally. Now it’s even “bigger and better” than before. Strategy: Buy a heavy-duty sport utility vehicle for your business. Due to a provision in the 2010 Tax Relief Act, you can write off most or all of the cost of an SUV placed in service this year—without the usual restrictions.
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.
Are you thinking about dismantling the credit shelter trust you set up years ago? Not so fast. There are still plenty of reasons for keeping the trust. The new estate tax rules in the 2010 Tax Relief Act that seemingly discourage the use of credit shelter trusts are scheduled to “sunset” after 2012.
The rules for substantiating business car deductions are hard to navigate. What’s more, it’s a hassle to comply with all the requirements. Strategy: Follow the IRS-approved route. If you veer off course, deductions may be disallowed. The IRS tends to take an extra-long look at deductions for business vehicles.
The new 2010 Tax Relief Act preserves favorable tax treatment for qualified dividends through 2012. Thus, you can benefit from a low tax rate for the dividends you receive from most domestic companies. Strategy: Expand your investment horizons. This tax break also includes dividends received from “qualified foreign corporations.”
The IRS is notoriously picky about taxpayers following its rules. But occasionally it gives taxpayers a little more leeway than usual. For instance, suppose you miss the 60-day deadline for IRA rollovers. Don’t concede the issue without a fight.