It's rare when you can have your tax cake and eat it too. But a new private letter ruling issued by the IRS gives certain older business owners a generous slice. It allows them to preserve the tax benefits of a "grand-father election" made over 20 years ago.
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.
Despite the chummy-sounding acronym, PALs (short for passive-activity losses) are anything but friendly to taxpayers, particularly those who invest in real estate. Fortunately, you can gain more tax saving value from your PALs with some astute tax planning.
Eureka! Your company has created a new gizmo that's a vast improvement on the competition's product. Once you work out the bugs, you expect to patent the invention to protect your interests. Then, you hope it will start selling faster than hot cakes.
Q: I plan on making charitable donations to several charities in other countries, including Israeli bond funds. Can I deduct those donations on my tax return? I.Z., Bethpage, N.Y.
Q: My main computer is a laptop that I use mostly for business in my home office. But I also use the laptop personally and let my kids play games on it sometimes. Will this cost me a home-office deduction? M.R., Danville, Ill.
Heads up: The IRS plans to ratchet up the audit pressure on small businesses in the coming months.
Suppose you want to add the new guaranteed minimum withdrawal feature (see above) to an existing variable annuity, but the issuer doesn't allow that option. Are you out of luck? Not necessarily.
Can't get enough of a good thing? To hoard even more money for retirement than the tax law allows for qualified plans (such as 401(k)s or pension plans), arrange things so your company makes contributions on your behalf to a nonqualified deferred compensation plan.
Do you run a business through two or more related companies? These days, it's not unusual for people to own multiple operations. But you could be inadvertently paying more employment tax than required if some of your employees are "shared" by more than one company.
Q: I bought a car this year that I used for my sales rep job. My company reimburses me for travel but not the interest I'm paying on a car loan. Can I deduct the interest as a business interest expense? E.L., Islip, N.Y.