2010 Tax Form 1040: Small Business

The 2010 Form 1040 reflects a number of new tax breaks for small businesses.  Today’s post addresses changes to the tax laws regarding small business expensing, depreciation, and general business credits. To help small businesses quickly recover the cost of capital outlays, small business taxpayers can elect to write off...

2010 Tax Preparation – Individual Savings

As we work with small business owners, we evaluate both the personal and business taxes.  In 2011, there are some important changes to the tax law which can create real tax savings for individuals, including: Limits on personal exemptions and itemized deductions ended. You no longer lose part of your...

Year-End Business Planning Provides Tax Savings: Debt Instruments

You may be able to reduce your tax liability through smart debt management planning. Consider whether to defer cancellation of debt (COD) income from the reacquisition of an applicable debt instrument in 2010. The business can elect to have the cancelled COD income included in gross income ratably over five tax years beginning with the fourth tax year following the tax year in which the repurchase occurs (i.e., beginning with 2014). Contact our office for more information.

Year-End Business Planning Provides Tax Savings: Corporate Losses

Increase your basis in a partnership or S corporation if doing so will enable you to deduct a loss from it for this year. A partner's share of partnership losses is deductible only to the extent of his partnership basis as of the end of the partnership year in which the loss occurs. An S corporation shareholder can deduct his pro-rata share of an S corporation's losses only to the extent of the total of his basis in (a) his S corporation stock, and (b) debt owed to him by the S corporation. Contact your CPA for a review of your options.