Small Business Income Tax Guide
Business Tax Tips to Use on Your Tax Return --
Winter, 2010 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.)
Employee Versus Independent Contractor Status
Tax Tips on Making the Correct Determination
Determining whether workers should be treated as employees or
independent contractors can have a major impact on small business taxes.
See the Full Article
Section 179 Expensing Deduction for 2009 & 2010
Fully Write Off Year-End Asset Purchases
The maximum small business asset write-off remains at
$250,000 for 2009 and 2010, and a business can choose how much to write
off when completing the tax return.
Proper Business Books and Records
Doing It Right Can Save Taxes and Avoid Penalties
Businesses are required to maintain books and records sufficient to
correctly compute their income and deductions for tax purposes.
Tax Tips on Reasonable Compensation
S Corporations Must Pay Company Officers
The tax code requires that shareholder-officers of an S corporation
must be paid a reasonable salary for their work on behalf of the company.
Employer Health Savings
Contribution Limits for 2009 and 2010
Employers can set up Health Savings
Accounts on behalf of employees, up to contribution limits set by the IRS.
Tax Tips on Small Business Credits
Your Business Could be Eligible
The tax code provides tax credits to businesses for
expenditures on green energy, employee child care and setting up new
pension plans, for example.
Timing Pension Plan
Make Plan Contributions
After the Tax Year Ends
Some pension plans, such as a SEP or SIMPLE, allow an
employer to make contributions on behalf of employees up to ten months
after the end of the tax year.
Lease Business Assets to Your Corporation
Strategy Can Offer Asset Protection
and Tax Savings
A corporation does not have to directly own all operating assets.
Explore leasing buildings or equipment to your corporation.