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 most significant provision in the Emergency Economic Stabilization Act of 2008 for small businesses as well as individuals is the one-year alternative minimum tax (AMT) “patch,” which will have very important budget impacts for small businesses. 

From a tax perspective, the time may be right to buy a new (not used) vehicle for business driving. Strategy: Place the vehicle in service before 2009. Reason: It qualifies for the new—but temporary—50% first-year bonus depreciation deduction.

Under the kiddie tax, unearned income above an annual threshold received by a young child is taxed at the parents’ top tax rate. The income threshold for 2008 is $1,800. The kiddie tax has been a thorn in the sides of parents for years. But it can really stick it to you in 2008. Here’s why ...

Section 529 plans are all the rage for college savings. But you might be inclined to go against the grain. Other options, such as custodial accounts, are still available. But you can do better by borrowing an idea from the estate-planning playbook. Set up a “Crummey trust.”

In the normal course of events, your company can benefit from the “half-year convention” under the Modified Accelerated Cost Recovery System for property placed in service by Dec. 31. The property is treated as being placed in service on July 1, so you benefit from a half-year’s worth of depreciation on this year’s return ...

No matter how careful employers are, they still can be sued. Recognizing the risk, more employers are choosing to protect themselves with employment practices liability insurance (EPLI), which covers your organization if it’s hit with an employment lawsuit. But it’s important to know which coverage is right for you ...

The IRS recently issued a warning, reminding employers that they remain responsible for paying payroll taxes on time, even if their outsourcing partner fails to do its part.

Conventional wisdom says to salt away as much money as you can in tax-sheltered retirement plans and IRAs. Reason: The contributions grow tax-deferred until you take withdrawals, usually when you’ve retired. But can you have too much of a good thing?

Don’t take an unrealistic position on your tax return or fail to file one based on some flimsy reason. The IRS annually targets tax positions and arguments it considers “frivolous.” Here's its list for the ’08 tax filing season. (IRS Notice 2008-14)

Q. We provide PDAs to virtually all our employees, some of whom are nonexempt. This enables them to send and respond to e-mails at all hours of the day and night. Does an employee’s time spent on his or her PDA outside of work count as hours worked?