The “Worker, Homeownership and Business Assistance Act” includes a powerful tax-saver for struggling business owners. It extends and expands the earlier Stimulus Act’s tax break for net operating losses. Strategy: Let the tax law do double duty. If you qualify, you can take advantage of the enhanced NOL carryback rules for both 2008 and 2009. A business that carries back an NOL to a profitable tax year is entitled to a quick tax refund from the IRS.
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 end of the year came and went without formal approval of the “Tax Extenders Act of 2009.” But once enacted, the new law would retroactively extend a bunch of key tax provisions that expired after 2009. Generally, it will preserve these tax benefits for one more year. Here are the main tax winners for individuals and businesses:
Maybe you’re not planning to move anytime soon despite the new homebuyer credit. As long as you’re staying put, you might decide to invest some money into the house. But you generally receive no current tax benefit from home improvements. Strategy: Make home improvements needed for medical reasons. If certain requirements are met, you can deduct a portion of the cost this year.
Starting Feb. 1, the IRS will begin intensive audits looking into the employment tax compliance of 6,000 randomly selected employers. One key target: identify employers that are improperly misclassifying employees as independent contractors. If your company is selected for audit, follow good IRS examination management practices.
Q. I transferred mutual fund shares worth $3,000 to my niece for her graduation. My basis was $2,500. If she sells the shares for $2,200, can she deduct the full loss?
The IRS recently announced that taxpayers who claim the first-time homebuyer credit on their 2009 returns cannot file electronically. Also, the agency has revised Form 5405, First-Time Homebuyer Credit, to reflect new law changes.
Roth IRA conversions aren’t just for older taxpayers in 2010. Suppose your 20-year-old has $25,000 in a traditional IRA. If he or she converts to a Roth this year, the tax may be limited to $3,750 (15% of $25,000), spread out over the next two years.
How can you check out a charitable organization’s status? The easiest way is to investigate it online. (Tip: Just having an “.org” extension isn’t enough.) Here are three top resources:
Q. I’m the sole beneficiary of my late spouse’s 401(k) with Prudential. Do I rename the beneficiaries if I transfer ownership to my name?
Smart organizations educate their employees about acceptable email use and follow a policy of regular computer-file purging to keep the company network free of unnecessary data storage. But what ...