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.
The “kiddie tax” isn’t just for kids anymore. Due to recent tax law changes, investment income earned by a child may continue to trigger the additional tax well into his or her 20s. This can put a damper on traditional college savings techniques for children. To avoid the kiddie tax, establish a “minor’s trust,” also called a Section 2503(c) trust, for kids or grandkids.
Perhaps an elderly relative—say, a parent or in-law—is reaching the point where he or she is no longer self-sufficient. The relative doesn’t quite need to enter a nursing home, but living alone is not an option. Strategy: Investigate continuing care retirement communities in the area. A CCRC may provide living accommodations that meet the needs of the relative, plus residents may be in line for medical expense deductions.
Employers can reward top employees, including company owners, by awarding them incentive stock options. Generally, there’s no tax due when the company issues the ISOs or when the individual exercises the options. The IRS taxes the employee only when he or she finally sells the stock. Strategy: Keep the options for the required holding period. As a result, the IRS taxes any gain at long-term capital gain rates.
Got a great idea for a new business? It usually costs money to make money, so you’re likely to incur certain startup costs before the brainstorm starts producing a cash flow. Strategy: Make sure you’re open for business before the end of the year. That will entitle you to deduct your startup expenses on your 2011 return.
HR Law 101: Your employee handbook should include statements on these topics: a welcoming letter from the CEO, rules and procedures, your employment policies, compensation and benefits, safety and health rules, an affirmative action statement and an acknowledgment receipt form ...