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.

Adjust your withholding allowances on Form W-4 if you overestimated the amount of tax you needed to have withheld this year or if you didn't pay enough tax during the year through quarterly installments or income tax withholding.

Under Section 179 of the tax code, your business may elect to “expense” (i.e., currently deduct) the cost of qualified assets up to an annual limit.. Strategy: Acquire and place business assets in service before year-end. After 2009, the maximum deduction is scheduled to revert to $125,000 (plus indexing for inflation).

Q. Our business is interested in using a “common paymaster.” Can we report all the payroll tax deposits on one form?

The tax law permits you to deduct the full amount of most charitable donations if you’ve kept proper records. Strategy: Donate securities that you have held for more than a year and that have appreciated in value. Reason: You can deduct the full fair market value of the securities without ever paying tax on the appreciation.

The so-called “kiddie tax” may come into play if your child’s unearned income exceeds a specified annual threshold ($1,900 for 2009). In that case, the excess income is taxed at the top marginal tax rate of the child’s parents—regardless of the original source of the funds. Strategy: Keep your child’s investment income below the $1,900 level.

Here's a collection of creative employee benefits programs, excerpted from our Compensation & Benefits newsletter: 1. Expectant and new moms get help from co-worker "buddies." 2. Shopping-spree contest helps boost sales, morale. 3. Cash advances help workers dress for success. 4. Employee committees choose company wellness programs. 5. Company pays employees to leave their cars at home. 6. Deployed workers get full pay, benefits and care packages. 7. Medical firm picks reality TV star as its "wellness ambassador." 8. British firm pays for "Botox leave."

If H1N1 flu threatens to shut down businesses nationwide, employers are going to need contingency plans to make sure they keep running. Flexible work schedules, temporary shutdowns and telework can all help—but all have unexpected wage-and-hour implications. Here’s guidance from the Department of Labor on how to handle these tricky issues.

Q. My wife works part time as a teacher’s aide in an elementary school. Can she deduct any of her personal expenses for school as a miscellaneous itemized deduction?

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If you have a flexible spending account (FSA) at work to pay for health care and/or dependent care expenses, remeber that any amount left over at the end of the year is forfeited, under the “use-it-or-lose-it” rule. Strategy: Squeeze every dollar out of your FSA before the year ends. You might even move up some nonemergency medical visits from 2010 to 2009.