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.

Q. Regarding your recent article, Any tax impact if I don't take IRA distributions in '09, I question why you would pay income tax quarterly when the RMD is taken in the last quarter. Is your answer accurate?

The New Jersey Legislature’s Office of Legislative Services has clarified that the state’s new family leave law isn’t to be funded with taxes on retirees’ pension payments.

Under the new economic stimulus law—the American Recovery and Reinvestment Act of 2009—you can deduct state and local taxes paid to purchase a new vehicle. The rules seem straightforward enough, but watch out for a few interesting twists and turns. Strategy: Do the tax homework before you buy a new set of wheels.

Suspending contributions to employees’ retirement accounts can immediately save an organization some cash. As the recession wears on, more businesses are looking at that option. Still, few are actually taking this step, and the ones that are have said it is temporary.

Although summer is officially right around the corner, there’s no vacation from tax planning. If you’re dedicated, you’ll be able to bask in tax savings as the weather heats up. Here are seven prime examples:

According to a recent report by Accounting Today magazine, small businesses are being targeted for tougher scrutiny from the IRS. Federal tax audits of small businesses with between $10 million and $50 million in assets increased 29% from 2005 to 2007.

You now have a new tax incentive to invest in fledgling corporations, thanks to the new economic stimulus law. You might even want to plow some money into your own company. Strategy: Buy new “qualified small business stock” (QSBS).

It's unlikely the one-year estate tax repeal in 2010 will occur. Proposed legislation retains the $3.5 million estate tax exemption and top 45% rate. It also reunifies the estate and gift tax exemptions.

The American Recovery and Reinvestment Act of 2009 gives small business owners a second chance at a “one-time” tax-saving opportunity. It revives the enhanced Section 179 deduction and “bonus depreciation” tax breaks that officially expired after 2008. These two tax goodies can be combined so that your small business can write off most, if not all, of the cost of new assets placed in service this year.

Uncle Sam often examines deductible travel expenses through a magnifying glass. So both employers and employees must meet strict recordkeeping rules—or face the consequences. Fortunately, you can take a shortcut. Use IRS-approved per-diem allowance rates in lieu of accounting for every bagel and cab ride from an employee's business trip.