Under the Economic Stimulus Act, business owners can cash in a bigger Section 179 deduction for 2008, plus a 50% “bonus depreciation” deduction. So there’s extra tax incentive to acquire qualified business assets this year.
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.
It often makes sense for itemizers to prepay state and local property taxes. But there’s no tax benefit for nonitemizers, such as your elderly parents or in-laws, who claim the standard deduction. Strategy: Encourage nonitemizers to prepay this year.
If you’re a surviving spouse, you can qualify for the $500,000 joint-filer home-sale gain exclusion if you file a joint return for the year of your spouse’s death and sell your home in that year. But this rule gives you precious little time to make plans during an emotionally charged time.
Q. My mother, who lives in Columbia, is giving me $75,000. Does that create any income or gift tax problems for me?
Usually, you have to pay a 10% penalty tax — on top of the regular federal income tax you owe — if you withdraw money from a traditional IRA before age 59½. But this rule comes with a few key exceptions ...
If you don’t pay enough tax during the year—including payroll withholding and quarterly installments—you could be assessed an “estimated tax” interest rate penalty for the underpayment. Strategy: Make sure you qualify for one of the tax law “safe harbors.” You have three options ...