If you bought a new car in 2009, get out your calculator: Your tax deduction choices are more complicated this year. Here’s why:
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 friend says you can deduct the value of your house if you allow the local fire department to burn it down. Is this possible?
The IRS recently issued final regulations covering procedures for installment payment agreements with taxpayers who can’t pay their federal income tax liabilities on time. The final regulations generally take a pro-taxpayer approach. For instance, the IRS will provide taxpayers with a 30-day notice if it intends to modify or terminate an installment payment agreement.
The IRS is gearing up for closer inspection of vehicle donations and says deductions will be automatically disqualified until taxpayers provide the required documents.
With the IRS beginning a nationwide crackdown on employers that try to dodge payroll taxes, now’s the time to make sure your workers are properly classified. Starting in February, IRS auditors began poring over the records of thousands of employers to root out organizations that try to cheat the system by calling workers contractors when they’re actually employees.
Form 1040 isn’t the only IRS form that’s been updated for 2009 tax returns. Here are several major changes on the accompanying Schedule A (Itemized Deductions), Schedule B (Interest and Ordinary Dividends) and Schedule D (Capital Gains and Losses).
The IRS' standard mileage rate for business drivers in 2010 is just a half a buck for each business mile traveled. That’s a nickel a mile less than the rate allowed in 2009. Strategy: Switch to the “actual expense” method for this year. Even if you initially started using the standard mileage rate in January, you still can come out ahead if you change your record-keeping habits now.
Due to the economic slowdown, the IRS expects more taxpayers to file early and claim their refunds sooner. Electronic filing is the quickest way to obtain a refund. Paper returns take four to six weeks to process. In contrast, e-filers can generally expect to receive refunds within 10 days.
There’s nothing humdrum about the Form 1040 you’re about to file with Uncle Sam. Thanks mainly to the economic stimulus law passed last year—the American Recovery and Reinvestment Act—the ’09 return is chock-full of tax breaks for the well-informed. Here are 10 tax moves to wake up to this year:
Are your kids nearing the time to enter college? If you’re like many parents, you may not have saved enough to finance the higher education of your offspring. Now it’s too late to benefit to any significant degree from a Section 529 plan or other college savings vehicle. Don’t panic. As the clock ticks down, you may be able to turn to other sources, without paying a small fortune in taxes.