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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.

It’s not enough if you pay your income tax to Uncle Sam, it’s also a question of when the tax is paid. You could be assessed an “estimated tax” interest charge penalty if you don’t fork over the required tax in a timely fashion. Fortunately, you can avoid any penalties if you qualify under one of three safe-harbor methods. The new economic stimulus law eases one of these safe harbors for qualified small business owners.

If you die with most of your retirement funds intact, your family could get walloped by estate tax on top of a hefty income tax bill for required plan distributions. Strategy: Use retirement plan funds to buy life insurance. When you die, the life insurance benefits are tax-free to the beneficiaries. They can use the cash to pay off their tax bills and pocket the rest.

If you find yourself muddled in crisis, shake off the shock, orient yourself and start looking for solutions—fast. Here's how:

Q. Payroll taxes are hurting our bottom line. May I convert part-time bookkeepers to "1099" employees?

Some employers unknowingly misclassify some of their employees as independent contractors. In doing so, they risk suffering severe consequences. By becoming familiar with the following tests, you minimize the chances of misclassifying an employee.

Q. I work for a nonprofit agency. We plan to start using an agency credit card. We need a policy that covers who can use the card and when, plus some other things I haven’t thought of yet. What should the policy include?

The economic recovery and stimulus bill President Obama signed Feb. 17 features several provisions affecting HR. Most require federal agencies to write new administrative rules, so it’s difficult to predict now exactly how they will work on an everyday basis. Here are some key provisions in the American Recovery and Reinvestment Act.

President Obama’s budget outline is casting a long shadow over tax planning. Although the proposed tax changes generally would not take effect until 2011, upper-income individuals and businesses would shoulder the brunt of the burden.

If you’re one of the 11 million account holders who have more than $120 billion invested in tax-free Sec. 529 plans for a child’s or grandchild’s college education, we’ve got good news about investment options. A new IRS ruling allows you to change your investment mix up to two times during the 2009 calendar year.

Q. In your article on the new stimulus law, you said that the Making Work Pay credit phases out beginning at an AGI of $150,000. Doesn’t it depend on modified AGI?