Small Business Tax Deduction Strategies

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.

If you’ve taken in a child under a foster-care arrangement, the payments you receive from the government or other qualified agency are generally tax-free. But the tax breaks don’t stop there.
The Pension Protection Act of 2006 overhauls the tax rules for deducting charitable donations. If you’re not careful, the tax reforms can hit you right where it hurts . . . in your pocketbook.
Your company is generally required to pay tax into a state unemployment-insurance fund. Although the figures vary from state to state, the pay-in is usually determined by the ratio of your payroll to the reserve in your account.
Common situation: As the beneficiary of a parent’s 401(k) plan, you’re entitled to receive a big lump-sum distribution from the plan. The 401(k) requires you to take the payout within a year of the plan participant’s death.
One of the tax laws passed this year—the Tax Increase Prevention and Reconciliation Act (TIPRA)—has caused a lot of grumbling among tax-savvy parents. Reason: TIPRA generally extends the “kiddie tax” an extra four years for every child.
Q.  My wife earns $50,000 a year and I earn about $100,000 annually. Now, I’m trying to start a sideline business. If the business has no income in 2006, can I still use the Section 179 write-off?
Q.  We’re interested in using a Section 529 plan for our youngest child, but is it too late to set up one for our oldest son, who is age 16?
Are your employees in a rut? It’s easy for them to fall into the trap of going through the motions. Here’s a way you can lift their spirits without giving away the farm.
If you inherit an IRA from your spouse, you have several options at your disposal. For instance, you can roll over the funds to an IRA of your own.Unlike a nonspouse beneficiary, you’re not required to take distributions from the IRA until after you reach age 701/2.
If it’s your dream to give up your whitecollar job to run a farm or raise horses in the country, you’re not alone. Many professionals living in the city or suburbs are drawn by the lure of the “simple life.” But things aren’t so simple from a tax perspective.