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 federal “bailout law” extends a variety of tax breaks that had expired after 2007. Generally, the extensions continue through 2009. Here’s how you can take advantage of the tax goodies under the tree this year.

If their mortgage is paid off — or close to it — your parents can’t squeeze much tax juice from their home other than property-tax deductions. Strategy: Consider buying your parents’ home, then lease it back to them at the going rate. That way, they can tap into the built-up home equity without moving away.

During this term, the U.S. Supreme Court will consider employment cases concerning arbitration, pregnancy discrimination, protected activity and union fee use.

Often it makes sense to tie part of your fortune to the company’s, particularly if you’re an owner or one of the main cogs in the machine. Strategy: When you’re ready to retire, keep the payout in the form of company stock. Don’t convert it to cash ...

 

Now that President-elect Obama’s administration is taking shape, what can taxpayers expect in the next year? Here are a few key proposals made by Obama late in his campaign.

Q. I bought a new computer through my self-employed business. Can I deduct the full cost if I use it at home?

 

The small biz tax law enacted last year imposed tougher standards on professional tax return preparers. It also increased the penalties that paid preparers face for tax understatements. So what does this have to do with you? Plenty

Business is bad for many businesses. Worst of all, you may have difficulty collecting payment for products delivered or services already performed. Strategy: Step up your collection efforts. If you don’t receive payment before year-end, you may be able to deduct the amount as a “bad business debt” on your 2008 return.

If you hire individual construction contractors to work for you, you have only a few weeks to make sure they are in compliance with a new state law. Beginning on Jan. 1, individual independent contractors working in the construction industry must obtain an Independent Contractor Exemption Certificate.

The economic stimulus law creates a tax incentive to buy business equipment this year. Under the new law, your business can claim “bonus depreciation” for qualified new (not used) business assets placed in service before 2009. But you may not derive any tax benefit from year-end purchases if you expect a loss this year ...