26
Nov

Year-End Business Planning Provides Tax Savings: Business Property Expensing

To help reduce your tax liability, you can make expenses qualifying for the $500,000 business property expensing option. The maximum amount you can expense for a tax year beginning in 2010 is $500,000 of the cost of qualifying property placed in service for that tax year. The $500,000 amount is reduced by the amount by which the cost of qualifying property placed in service during 2010 exceeds $2 million. Also, within the overall $500,000 expensing limit, you can expense up to $250,000 of qualified real property (certain qualifying leasehold improvements, restaurant property, and retail improvements). Note that at tax return time, you can choose not to use expensing (or bonus depreciation) for 2010 assets. This is something to consider if tax rates go up for 2011 and future years, and you'd rather have more deductions after 2010 than for 2010. Our office can help you work through this decision-making process.
26
Nov

Tax Changes: Cell Phones no Longer Property and Limited Penalty for Disclosing Transactions

New classifications for business property and limitations of reporting penalties can simplify and encourage record keeping. Cell phones no longer listed property. This means that cell phones can be deducted or depreciated like other business property, without onerous record keeping requirements. ( This information provided by: © 2010 Thomson Reuters/RIA....