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 new 2010 Tax Relief Act preserves favorable tax treatment for qualified dividends through 2012. Thus, you can benefit from a low tax rate for the dividends you receive from most domestic companies. Strategy: Expand your investment horizons. This tax break also includes dividends received from “qualified foreign corporations.”
No company can function without maintaining a variety of records. To control this massive proliferation of files, you must develop a records management system that you can refer to daily to decide what you must keep and what you can toss.
Maintaining personnel records used to be a whole lot simpler. In fact, any HR department that wanted to be absolutely safe on the subject simply issued a “keep everything” policy. But now, that same “keep everything” strategy can cost you as much as a lawsuit. Maybe even more.
Despite what you may think, not all charities are created equal. Some organizations qualify as “50% charities” while others are “30% charities.” Different tax limits based on your adjusted gross income may apply.
The challenges facing HR pros who specialize in talent, compensation and benefits are dramatically different today than they were just a year ago. At Deloitte Consulting, we call it “the talent paradox”—the apparent contradiction that occurs when unemployment is still relatively high, yet companies still are seeing significant shortages in critical talent areas.
Q. My husband is receiving a corporate buyout. Will the severance pay be subject to payroll taxes?
The new 2010 Tax Relief Act creates favorable estate tax rules for the two years extending from Jan. 1, 2011, through Dec. 31, 2012. If it suits your needs, you can also choose to use the “new rules” instead of the “old rules” for a decedent who died in 2010.
Q. My S corporation had a bad year in 2010. Could this affect my deduction for charitable contributions as a joint filer?
The IRS has announced it is expanding use of Twitter and other social media tools so it can better share information with the public. Anyone with a Twitter account can follow its news feed, @IRSnews.
On the crucial question of whether a worker is an employee or an independent contractor, you had better answer correctly. Otherwise, expect scrutiny from the IRS, which monitors worker status to make sure Uncle Sam collects all taxes due. The IRS looks at three broad categories of information to decide whether someone is an employee or a contractor.
Did you fail to qualify for the Section 199 “manufacturing” deduction in the past? Don’t give up. A business taxpayer who didn’t meet the requirements in a prior calculation might do so on a 2010 return. Best of all, the maximum deduction reached its high-water mark in 2010, so it’s more valuable than ever.
The tax law generally treats rental real estate properties as “passive activities” that are, by definition, subject to the passive activity limits on losses (the so-called PAL rules). But a property with an average rental period of seven days or fewer is not considered a rental activity for purposes of the PAL rules. So pay close attention to the length of rental periods to benefit from the exception for short-term rental properties.
Sometimes, it’s possible for an employee to have two employers. That’s often the case when a temporary service provides workers for a client, and both the temp company and the client exercise significant control over how and when the work is performed. But now there’s a new wrinkle.
New Jersey employees will be making smaller contributions to the state’s family leave fund this year than they did in 2010. Last year, workers paid 0.12% of their wages until they reached the maximum amount of $35.64 per year. For this year, the rate is 0.06%, with an annual cap of $17.76.
Suppose you are getting ready to downsize from a country estate. A big spread is likely to fetch a good price, especially if the land in your area is desirable. Strategy: Subdivide the property and sell the parcels separately. Just make sure to sell the land parcels and the parcel that includes the residence within a two-year period.
Many companies design succession plans so they can spot the next generation of leaders early and develop current employees to their full potential. If your organization is involved in such a process, step back and look: Does everyone who is tapped for special treatment come from the same race or gender? Or does the chosen group exclude older workers or the disabled?
This year's 1040 tax return package includes the following new entries on Schedule A, Itemized deductions; Schedule B, Interest and ordinary dividends; Schedule C, Profit or loss from business; Schedule E, Supplemental income and loss; and Schedule SE, Self-employment tax:
As with medical expenses, you can’t deduct miscellaneous itemized expenses on your tax return if you can’t clear an annual “floor.” But in this case, you don’t have as far to climb: You can deduct miscellaneous expenses that exceed 2% of your AGI.
Are you facing a higher-than-expected tax bill on your 2010 return? Don’t despair. It’s not too late to cut your 2010 tax bill with some savvy moves on your return. Here are six prime examples.
Make sure you make the employee-or-contractor call before you hire an employee. Don’t assume you can make the designation later. That usually won’t work. And you probably won’t even discover the problem until it’s too late to fix it—when a terminated worker files an overtime lawsuit.