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.

All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past. Strategy: Add an “age-weighted” feature to a profit-sharing plan.

Treasury has formally released its explanations of President Obama’s tax proposals for the 2010 fiscal year. The long-awaited “Green Book” provides vital in-depth information for both individual and business taxpayers. The proposed tax changes hit hard: Revenue-raisers aimed at individuals total more than $736 billion over 10 years while business tax cuts amount to $71 billion over the same period.

You might not be able to pay for additional benefits during a recession, but some organizations are finding ways to plump their menu of perks at no cost. Here are some practical, easy-to-implement ideas for you to try:

Umpqua Bank makes it easy for its 1,700 employees to comply with a strict, professional dress code: It lends them money to buy clothes. Since 1996, the bank, with 150 branches, has advanced money to any employee who asks for it—up to $1,000 a year—to spend on work clothes.

Q. An employee has requested one hour of unpaid intermittent FMLA leave. Can we require him to use up a half or full day of leave instead?

No one knows if and when a disaster will strike. But the IRS wants you to be prepared for the possibility. The IRS is warning taxpayers to safeguard their records. It points out six simple steps to help protect individuals and businesses concerning disaster preparation.

An employee approved for intermittent FMLA leave says she only needs to take an hour this week. Can she take leave in such a short increment? Could she take even less?

The IRS has yet to issue formal guidance on whether multiple vehicles can qualify for the new vehicle sales tax deduction. But taxpayers can expect some good news on the way. Alert: There’s no limit per taxpayer, an IRS spokesperson recently told tax publisher CCH. Therefore, if you qualify, you can write off sales and excise taxes for two or more vehicles purchased this year.

A 2008 tax law temporarily suspended the rule for required minimum distributions (RMDs) from qualified plans and IRAs for the 2009 tax year, but confusion still exists. To provide assistance to taxpayers, the IRS recently updated the FAQs on its web site.

The IRS may hold an individual personally liable for a “willful” failure to pay employment taxes on time. Even a hands-off business owner could be socked with a seven-figure tax bill, as the following case shows.