Under the new economic stimulus law—the American Recovery and Reinvestment Act of 2009—you can deduct state and local taxes paid to purchase a new vehicle. The rules seem straightforward enough, but watch out for a few interesting twists and turns. Strategy: Do the tax homework before you buy a new set of wheels.
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. I haven’t received my economic stimulus check yet. Will this be mailed out soon?
Have you been victimized by an investment Ponzi scheme like Bernie Madoff's? A new IRS ruling says you can deduct such a loss as a theft loss rather than a capital loss.
A savvy real estate owner can postpone tax by selling property on the installment sale basis. But you may be able to postpone the tax bill even further. Strategy: Consider using a “wraparound sale.” In effect, you offer to carry the buyer’s note to facilitate the sale of the property.
Suspending contributions to employees’ retirement accounts can immediately save an organization some cash. As the recession wears on, more businesses are looking at that option. Still, few are actually taking this step, and the ones that are have said it is temporary.
Although summer is officially right around the corner, there’s no vacation from tax planning. If you’re dedicated, you’ll be able to bask in tax savings as the weather heats up. Here are seven prime examples:
According to a recent report by Accounting Today magazine, small businesses are being targeted for tougher scrutiny from the IRS. Federal tax audits of small businesses with between $10 million and $50 million in assets increased 29% from 2005 to 2007.
You now have a new tax incentive to invest in fledgling corporations, thanks to the new economic stimulus law. You might even want to plow some money into your own company. Strategy: Buy new “qualified small business stock” (QSBS).
It's unlikely the one-year estate tax repeal in 2010 will occur. Proposed legislation retains the $3.5 million estate tax exemption and top 45% rate. It also reunifies the estate and gift tax exemptions.