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.

Senior citizens participating in the Medicare Part D prescription drug program may be in line for a special tax-free rebate. As authorized by the new health care law, Medicare will be sending out $250 checks to individuals who have prescription drug expenses exceeding the threshold of $2,830 for the year.

Employees who claim they have been discriminated against typically have to show that their employers singled them out for poor treatment because of a protected characteristic. It’s easy for employers to counter that if they can show they always act in good faith. The best way to do that is to apply the rules equally to every employee.

Q. In a recent article, you said that you must report depreciation as taxable income on a home sale, even if you didn’t claim it. Is this correct?
Q. I am moving to Puerto Rico permanently, but will retain my U.S. citizenship. Do I have to pay U.S. income tax on my wages?

Are you ready for a computer upgrade? Don’t trash the old one if it no longer meets your needs. Besides helping to save the environment, you can save taxes to boot. Strategy: Donate the PC to a charity. Usually, you can deduct the full fair market value of the computer. Therefore, you can seize a tax deduction for property you were going to discard.

Since the beginning of the year, financial experts have been beating the drums for Roth IRA conversions. And this tax strategy still makes sense for many taxpayers. But you may find, upon closer review, you would be better off if you had left things alone. Are you completely out of luck? Not necessarily. You can convert your Roth back into a traditional IRA if you choose. It’s like it never happened.

Q. Our small company is rehiring a couple of workers we laid off. Can we claim the HIRE Act payroll tax exemption for these employees?

Under Section 179, you can currently deduct up to $250,000 of assets placed in service in 2010. But not every business can benefit. You may have to write off assets over the regular depreciation period. Strategy: Time equipment purchases to suit your needs. Usually, you’ll fare better tax-wise by placing assets into service before Oct. 1. But, surprisingly, you might maximize your deductions after the Sept. 30 deadline.

Thanks to the new health care legislation, you can keep older children on your company health care plan for a longer period of time. The IRS has released temporary regulations clarifying the new rules. The new rules may alleviate your concerns about children who recently graduated college or moved out of the home without adequate coverage of their own.

Pamela Anderson shares something in common with a few fellow celebrity contestants on a recent season of ABC’s “Dancing with the Stars.” At least three others also have made headlines for being in hot water with the tax authorities. Interesting question: Is this a coincidence or do celebrities go on the show to earn money to pay their taxes?