Small business tax tips for income tax preparation & income tax planning

CHECK OUT
PREVIOUS BUSINESS TAX ARTICLES

IN THE
BUSINESS TAX TIPS ARCHIVES.

Summer, 2011

Winter, 2010

Winter, 2008

Winter, 2007

Summer, 2006

Winter, 2006
Summer, 2005
Winter, 2005

Summer, 2004
Winter, 2004

Summer, 2003
Winter, 2003

This page last updated on
December 10, 2006

Small Business Income Tax Guide
Business Tax Tips to Use on Your Tax Return -- Winter, 2007 Archive Articles
(NOTE: The tax information in the following articles was current as of the date on the page. Tax law may have changed since these articles were posted.)

Start a New Retirement Plan for Your Small Business
You can Claim a Tax Credit of up to $500
Businesses employing 100 or fewer employees can claim a tax credit for qualified expenses incurred in starting up a new employee retirement plan.
See the Full Article for Details.

Small Business Tax Tips on Health Insurance
Business Owners Must Follow Rules for Deduction

Self-employed taxpayers are allowed to deduct the cost of their health insurance on page one of their 1040, but the rules are more complicated for owners of a corporation.
Full Article

If You are Starting a New Business
Start-up Costs are Deductible up to $5,000
Expenses incurred before a business begins operations are called start-up costs. Up to $5,000 of these expenses can be deducted in the first year of business operations, but the remainder must be amortized over 15 years.
Full Article

Small Business Tax Tips on Selling Your Business
An Installment Sale May Both Defer and Save Tax
If payment for sale of business assets extend beyond one year, that is an installment sale. An installment sale can defer tax on any gain over several years and, by spreading the reportable gain over several years, can result in proceeds being taxed in a lower bracket.

Full Article

Small Business Tax Tips for Online Tax Payments
Save your business time, money and paper

The IRS Electronic Federal Tax Payment System (EFTPS) allows business owners to pay most business taxes online, eliminating paper checks and payment vouchers.
Full Article

Hire Your Children to Work in Your Business

Sole proprietors can avoid payroll tax
If your children are under age 18f, you can hire them and not have to pay the Social Security and Medicare tax. Also, you do not have to pay federal unemployment tax until they reach age 21.
Full Article

Charitable Contributions for Business

Extended deductions for food donations

Businesses that donate food from inventory to charitable organizations may deduct up to two times the cost of the food for a limited time.
Full Article

Corporate Donations of Book Inventory
Extra deduction extended for two more years
Corporations that donate books to elementary or secondary schools are allowed to claim extra tax deductions for donations made before the end of 2007.

Full Article

Small Business Tax Tips on Rental Properties
Write-offs repairs and capital improvements

It is important for landlords to properly separate costs of repairs from costs of capital improvements. Repairs are immediately deductible, while improvements must be written off over several years.
Full Article

Slightly Higher Car Depreciation Limits for 2006
Here are the limits on depreciation for business use of an automobile, effective for any car first used in business on January 1, 2006 or later:

First Tax Year	$2,960
Second Tax Year	$4,800
Third Tax Year	$2,850
Each Succeeding Year	$1,775


	Standard Mileage Rates for 2006 The standard mileage rate for the business use of your vehicle is 44.5 cents per mile for 2006. You can use the standard mileage rate even if you lease your vehicle.


	Increased Section 179 Limit The §179 expense deduction equals $108,000 for 2006. This means you can write off the first $108,000 in equipment purchases you made during the year. You can wait until the last day of your tax year to purchase equipment and still deduct the full $108,000.


	Personal Use of Employer-Provided Car is Taxable Income If you provide your employees with a vehicle for work, and they use it for personal reasons, the value of the personal use must be included in their W-2 salary or wages.


	Social Security Tax Ceiling Raised The first $94,200 of your net self-employment income is subject to self-employment tax in 2006.


	Business-Owned Vehicle Regarded as 100% Business If your business owns vehicles that are available for employees’ personal and business use, the vehicle is nevertheless considered used 100% for business on the business tax return. The personal-use percentage is included on the employee’s W-2 as additional compensation.


	Business Entertainment Deduction If you incur entertainment costs for business reasons, you may be able to deduct 50% of the amount. The expense must be considered ordinary or necessary to your profession.


	Find More Business Tax Tips from Good Tax Books or Tax Software. Click here.

Small Business Tax Tips
business tax guide
small business tax tips
small business tax guide

[Home] [Site Map] [Contact Us]

Small Business Income Tax Guide Business Tax Tips to Use on Your Tax Return -- Winter, 2007 Archive Articles (NOTE: The tax information in the following articles was current as of the date on the page. Tax law may have changed since these articles were posted.)

Small Business Tax Tips business tax guide small business tax tips small business tax guide

Small Business Tax Tips

Small Business Income Tax Guide
Business Tax Tips to Use on Your Tax Return -- Winter, 2007 Archive Articles
(NOTE: The tax information in the following articles was current as of the date on the page. Tax law may have changed since these articles were posted.)

Small Business Tax Tips
business tax guide
small business tax tips
small business tax guide