Tax time for small businesses is typically very stressful. With the April 15 deadline approaching, now is the time (if you haven't already) to get started on preparing your taxes. While researching for this week's tax tips and blog, I came across many tax tips that I didn't know about. Check out my Top 10 Tax Tips!
File Your Tax Return for Free - The IRS Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies. Free tax preparation and filing via online software is available to anyone with a 2009 Adjusted Gross Income of $57,000 or less. If that’s you, head to the IRS website and choose from a list of approved tax preparers, and get started. If you aren’t sure which preparer to use, ans... [Read Full Article]
Tips from March 10, 2010Are you collecting the maximum tax breaks from the stimulus law passed last year? Here are the 5 best business tax breaks.
Bonus depreciation. Allows a business to deduct 50% of the cost of a new asset in the year it is placed in service.
Section 179 expensing. A small business can elect to expense up to $250k of the cost of qualified assets.
Net operating losses. Under the new law, most businesses can elect to carry back losses for up to 5 years, instead of the usual 2 years.
Discharge of business debt. The stimulus law allows businesses to recognize discharge of indebtedness income over 5 years, rather than all in 2009.
Exclusion of gain on the sale of qualified small business stock. Increased to 75% for any gain from a sale between Feb 09 and Jan 11.
Daily Overview: Keep the 2009 stimulus law in mind when you are calculating your taxes this year.
Big thanks to... [Read Full Article]
Tips from March 9, 2010With many business tax returns due on April 15th, the Small Business tips today discuss common tax return errors and how to avoid them.
The most common business tax return error is also the easiest to avoid – make sure the return is signed by a company officer.
According to the IRS, the #2 business tax return error is failing to include the correct tax ID number. Is yours correct?
Incorrect sequencing or missing forms are easily preventable return errors. Review the instructions for each return one last time.
Late or inaccurate election to be treated as an S corporation. This is a big one, because an invalid election will mean your corporation will be subject to double-taxation for the year.
Daily Overview: With correct preparation and execution, tax time doesn't have to be stressful. Be prepared, organized, and turn to help if you need it.
Big thanks to Ky... [Read Full Article]