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 the 100 percent federal employment tax penalty doesn’t strike fear in the hearts of small business owners, it should. Why? That tax-code provision requires the person “responsible” for unpaid employment taxes to personally pay 100 percent of the amount withheld from employees’ paychecks.
Back in the ’90s, Congress wiped off the books one of the most hallowed tax breaks when it repealed five-year “income averaging” on retirement plan payouts. That tax break allowed you to calculate the tax on a lump-sum distribution as if the funds were paid out over five years instead of just one. But an even better tax break—10-year averaging—managed to avoid the ax.
Are you getting ready to hand over the reins of your corporate business to the younger generation? Typically, you might arrange to sell shares of company stock to your successors or simply give the stock to them. But take note: Each of these options can carry a heavy tax price.
How can you save for retirement while operating your business? At one time, small business owners were often left out in the cold. But retirement savings isn’t just for the “big boys,” anymore.
If you’ve invested a lot of your retirement plan funds in your employer
company stock (including a company you own), you may be in line for a
big future payday. When it comes time to retire, you can choose to cash
out by having your retirement account sell the stock, or you might
decide to simply take your payout in the form of company stock.
You’ve spent years building up your C corporation business into a successful operation. But how can you take more cash out of the company now without facing a tax disaster?
Let’s compare the tax results for leasing a business building to a C corporation as opposed to having the company own the property outright.
You may suffer a severe case of sticker shock the next time you’re shopping for a car. However, the federal income tax depreciation deductions available to business drivers for vehicles placed in service in 2006 have barely increased or stayed the same.
The IRS has addressed the tax consequences of environmental cleanup costs in several rulings. Although the details differ, the basic thrust is the same: Cleanup costs generally must be capitalized, which means your business earns no current tax benefit for the expenses.
How are your children ever going to buy a nice home in a desirable area? One solution: Enter into an equity-sharing arrangement with your child.