A recent government study showed that the average small business overpaid its taxes by $11,638. That’s sad enough. But sadder still is the fact that the tax code is actually written to favor small businesses like yours.
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 rules for home-office deductions are particularly tough for corporate employees. Even if you legitimately use a home office for business purposes, you may not be entitled to a deduction. It doesn’t matter if you’re the owner of the company. Strategy: Rent the office to the company, which can deduct the rent payments as a business expense. You must pay income tax on the rent payments, but won’t owe employment taxes.
A new Tax Court decision could produce a better tax result for many owners of LLCs and partners in LLPs. Strategy: Use a loss from an LLC or LLP to offset other highly taxed income. Previously, it was presumed that such losses usually could be used only to offset income from other “passive” activities. But the new case has opened the door to bigger tax savings.
Time is running out on a unique tax break for older taxpayers with charitable intentions. Strategy: Donate funds directly from your IRA. Instead of taking a taxable withdrawal and contributing what’s left after taxes, give the full amount to charity. There’s no tax due on the distribution.
Q. Our company is hiring temporary workers for a big upcoming job. Do we have to treat them as employees?
True or false: Employees are either creative or they’re not—creativity isn’t a skill you can teach. False. Managers can play a key role in creating an environment in which employees will want to look for new ideas. Share this article with your supervisors to help tap employee creativity.
There’s more than just semantics involved when you’re talking about the tax treatment of “repairs” for a business building versus “improvements.” On one hand, the cost of repairs made by your business is currently deductible. On the other, the cost of improvements must be capitalized and written off over time via depreciation deductions.
Typically, if you have a downtown office and take work home on nights and weekends, you won’t qualify for a home office deduction. Reason: The home office isn’t your principal place of business. But don’t give up! You still might be able to deduct certain expenses connected with that home office.
Texas Workforce Commission Chairman Tom Pauken of Dallas recently announced that Texas employers should expect their unemployment insurance taxes to rise significantly next year. Pauken said the increase in layoffs is close to exhausting a state trust fund.
Q. One of my employees who recently quit has failed to pay back a personal charge he made on our corporate credit card. Can I simply deduct the amount of the charge from his last paycheck or withhold his final paycheck until he pays for the charge?