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....
24
Nov

Year End Tax Tips

As the year is winding down, it is time to start doing a bit of tax planning .  Small business owners who spend a little time on tax planning now, may see significant savings when tax preparation time rolls around in January. In this podcast interview with Roundpeg owner, Lorraine Ball,  I...
8
Nov

Tax Changes: Small Business Jobs Act of 2010

The Small Business Jobs Act of 2010 made beneficial changes to the application of general business credits toward tax and AMT liability offsets. (P.L. 111-240) General business credits of eligible small businesses for 2010 get five-year carryback. Generally, a business's unused general business credits can be carried back to offset taxes paid in the previous year, and the remaining amount can be carried forward for 20 years to offset future tax liabilities. Under Small Business Jobs Act, for the first tax year of the taxpayer beginning in 2010, eligible small businesses can carry back unused general business credits for five years instead of just one. Eligible small businesses are sole proprietorships, partnerships and non-publicly traded corporations with $50 million or less in average annual gross receipts for the prior three years. General business credits of eligible small businesses not subject to AMT for 2010. Under the AMT, taxpayers can generally only claim allowable general business credits against their regular tax liability, and only to the extent that their regular tax liability exceeds their AMT liability. A few credits, such as the credit for small business employee health insurance expenses, can be used to offset AMT liability. The Small Business Jobs Act allows eligible small businesses to use all types of general business credits to offset their AMT in tax years beginning in 2010. (Source for this information: © 2010 Thomson Reuters/RIA. All rights reserved.) If you are unsure of how your general business credits can be used to offset your tax or AMT liability, contact your CPA.
3
Nov

Tax Changes: Start Up Expenses

Thinking about starting a new business?  Changes in the tax law allow you to write off more of the start up expenses. Boosted deduction for start-up expenditures. The Small Business Jobs Act allows taxpayers to deduct up to $10,000 in trade or business start-up expenditures for 2010. The amount that a business...