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.

You might decide to reduce your taxable estate through lifetime gifts. But you’d also like to avoid a hefty gift tax on amounts above the $1 million lifetime gift tax exemption and annual gift tax exclusion ($13,000 per recipient in 2010). Consider “net gifts” to family members: The recipient pays any gift tax due on the transfer.
Q. I have three IRAs and must start taking minimum required distributions in 2010. Do I have to withdraw from all the IRAs?
The IRS plans to turn up the heat on smaller corporations, based on a new report from the Treasury Inspector General. Beginning in 2011, the IRS intends to conduct 22,000 line-by-line exams of 2009 returns of random corporations with $50 million or less in assets.

Raleigh, N.C.-based Morganite Industries has reaped a 178% return on the investment it made to put its benefits enrollment, communication and data exchange online. It took only seven months for the 2,500-employee organization—which provides tax, benefits, health, safety and financial services for its parent company, Morgan Crucible—to recoup its initial investment.

At least you can be certain that Social Security taxes won’t be going up in 2011. Because a cost-of-living adjustment (COLA) for Social Security benefits isn’t going to happen for next year, the ceiling for the 12.4% Social Security tax will remain at $106,800 of wages and/or self-employment income for 2011.
As the end of the year approaches, investors can cash in some tax-saving opportunities. Here are seven prime examples:
Q. We want to buy our business building. Can we write off most of the cost if we complete the deal by Dec. 31?
Good news: The "wage base" for Social Security tax purposes will remain at $106,800 for 2011. Bad news: Correspondingly, Social Security recipients won't receive an increase in benefits in 2011.
If you own a vacation home you rent out, rental deductions are limited to rental income if your personal use exceeds the greater of 14 days or 10% of the rental time. To preserve a deductible loss for 2010, rejigger your schedule.
Q. I’m thinking of going back to school. Can I set up a Section 529 plan for myself?