South Dakota has replaced Wyoming as the state with the best “business climate,” while New Jersey remains the worst in the annual State Business Tax Climate Index (SBTCI) conducted by the Tax Foundation, an independent tax advocacy group. The SBTCI ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax.
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 son was laid off from his job in April 2009. Does he still benefit from the new extension for COBRA subsidies?
President Obama’s State of the Union address on Jan. 27 outlined a broad agenda of tax provisions that are intended to breathe new life into the economy. The overall idea is familiar: take more from taxpayers at one end of the financial spectrum and distribute it to some at the other end, using a series a tax provisions. Here are some highlights of Obama’s proposed changes:
Q. I bought a new car costing $60,000 in 2009. Can I deduct the sales tax for the new vehicle purchase plus an amount for the optional sales tax deduction?
You may be liable for wage-and-hour violations involving people you don’t ordinarily think of as actual employees. That’s because California uses a long list of factors to consider when deciding whether someone is an employee. One of those factors: Who provides the individual’s paycheck and makes tax deductions? Another factor: Who gives directions to the worker?
Is someone in your family planning to adopt a child? It can be costly and time-consuming—not to mention the emotional roller coaster. Strategy: Recoup some expenses through the adoption tax credit, which reduces your tax bill on a dollar-for-dollar basis. Although it phases out for high-income taxpayers, many parents—especially younger ones—will benefit from at least a partial credit.
While many 401(k) plan participants jumped ship following the stock market’s plummet in 2008, some have slowly been returning to the fold. Strategy for business owners: Add an “automatic enrollment feature” to your 401(k). This will encourage those employees still on the bubble to participate in the plan. In turn, you may be able to stockpile more money for your own retirement.
Q. I’m selling my house where I’ve claimed home office deductions in the past but not depreciation. Will my home sale exclusion be reduced?
The buzz about Roth IRA conversions is getting louder. And why not? Beginning in 2010, the IRS eliminated the prior restriction that disallowed conversions for taxpayers with an AGI above $100,000. And you can split the taxable income triggered by a 2010 Roth conversion evenly over 2011 and 2012. But should you convert to a Roth? That’s another story.
Thanks to a new law change, longtime homeowners can now get a piece of the homebuyer credit pie. But you have to move fast if you plan to buy a new home. To qualify, you must complete the purchase before May 1, 2010. If you secure a binding contract before May 1, you have until June 30, 2010, to finalize the sale. Best of all, you can claim the credit on your 2009 return—even if you buy the home in 2010.