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.
The tax law generally treats rental real estate properties as “passive activities” that are, by definition, subject to the passive activity limits on losses (the so-called PAL rules). But a property with an average rental period of seven days or fewer is not considered a rental activity for purposes of the PAL rules. So pay close attention to the length of rental periods to benefit from the exception for short-term rental properties.
Sometimes, it’s possible for an employee to have two employers. That’s often the case when a temporary service provides workers for a client, and both the temp company and the client exercise significant control over how and when the work is performed. But now there’s a new wrinkle.
New Jersey employees will be making smaller contributions to the state’s family leave fund this year than they did in 2010. Last year, workers paid 0.12% of their wages until they reached the maximum amount of $35.64 per year. For this year, the rate is 0.06%, with an annual cap of $17.76.
Suppose you are getting ready to downsize from a country estate. A big spread is likely to fetch a good price, especially if the land in your area is desirable. Strategy: Subdivide the property and sell the parcels separately. Just make sure to sell the land parcels and the parcel that includes the residence within a two-year period.
Many companies design succession plans so they can spot the next generation of leaders early and develop current employees to their full potential. If your organization is involved in such a process, step back and look: Does everyone who is tapped for special treatment come from the same race or gender? Or does the chosen group exclude older workers or the disabled?
This year's 1040 tax return package includes the following new entries on Schedule A, Itemized deductions; Schedule B, Interest and ordinary dividends; Schedule C, Profit or loss from business; Schedule E, Supplemental income and loss; and Schedule SE, Self-employment tax:
As with medical expenses, you can’t deduct miscellaneous itemized expenses on your tax return if you can’t clear an annual “floor.” But in this case, you don’t have as far to climb: You can deduct miscellaneous expenses that exceed 2% of your AGI.
Are you facing a higher-than-expected tax bill on your 2010 return? Don’t despair. It’s not too late to cut your 2010 tax bill with some savvy moves on your return. Here are six prime examples.
Make sure you make the employee-or-contractor call before you hire an employee. Don’t assume you can make the designation later. That usually won’t work. And you probably won’t even discover the problem until it’s too late to fix it—when a terminated worker files an overtime lawsuit.
Due to a myriad of new tax laws, IRS rulings and other adjustments, you’ll find numerous new twists and turns on this year’s Form 1040. Significantly, the new Form 1040 incorporates changes resulting from the Small Business Jobs Act of 2010 and the 2010 Tax Relief Act passed late last year.