Minimizing Tax Liabilities for Small Businesses

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Minimizing Tax Liabilities for Small Businesses
BALCONY

• Rosemarie Klotz

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Tax Tip 1

• DEPRECIATION VS. EXPENSEIf you buy new
  business equipment, under Section 179 of the
  Internal Revenue Code, you can expense up to
  250,000 of your purchase this year if the total
  purchase is not greater than 800,000, instead of
  depreciating it.

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Tax Tip 2

• Rehabilitation credit available for restoration
  of qualified business buildings and certified
  historic structures

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Tax Tip 3

• Disabled access credit for bringing
  facilities into compliance with the Americans
  with Disabilities Act.

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Tax Tip 4

• Credit for providing low income housing.

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Tax Tip 5

• Credit for developing orphan or generic
  drugs.

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Tax Tip 6

• Credit for using alternative fuels.

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Tax Tip 7

• Disaster relief when an area is declared a
  national disaster includes special casualty
  loss provisions, filing extensions, and more.

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Tax Tip 8

• Energy credits for construction of energy
  efficient homes, manufacture of energy efficient
  appliances, and more.

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Tax Tip 9

• Alternative motor vehicle credit for
  qualifying hybrid, fuel-cell, plug-in electric,
  and other alternative motor vehicles used for
  business.

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Tax Tip 10

• Credit for pension plan start-up costs. (Plan
  contributions funded by employer are also
  deductible).

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Tax Tip 11

• Work Opportunity Credit for hiring certain
  targeted groups including unemployed veterans,
  individuals living in disadvantaged areas, and
  disconnected youth (age 16-25) not attending
  school or employed.

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Tax Tip 12

• Credit for employer-provided child care
  facilities and services.

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Tax Tip 13

• Worker, Homeownership and Business Assistance
  Act of 2009 companies can offset
  losses from 2008 and 2009 against profits
  as far back as 2004.

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Tax Tip 14

• Friendly warning In order to close tax gap,
  the Internal Revenue Service has hired many new
  agents to focus on small business owners. The
  focus will be on the maintenance of back-up
  documents for expenses.

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• Questions?
• Please feel free to call with any questions that
  come up in the future. HR BLOCK is here to
  help. Phil Amundsen
  Westchester District Manager
  [phone]