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Year-End Tax-Saving Tips. (business)
You can choose to deduct the cost of qualifying equipment purchased and put into use in 2005, rather than depreciate it over several years. Such equipment includes machinery, furniture, and off the shelf software. The section 179 expensing limit for 05 is $105,000.00
Starting this year, businesses may take a 3% deduction for qualified income from domestic manufacturing activities. The deduction isn't limited to traditional manufacturing; it includes computer software, films and videotape. One of the provisions of the American Jobs Creation Act of 04. The deduction will gradulally increase until it reaches 9% in 2010.
If you do not already have a returement plan, consider setting on up before year's end. You may be able to deduct contributions you make to a SEP, SIMPLE, and other qualified plans for yourself and employees. Small employers (100 or less employees) may also be eligible for a tax credit of 50% of the first $1000.00 of startup and administrative costs if you begin a new qualified plan, including a 401(k).
Self-employed individuals, certain general and limited partners and S corporation shareholders may be able to deduct up to 100% of premiums paid for medical and qualified long term care insurance for themselves, their spouses and dependents on their individual income tax returns. For many employers, a HSA, coupled with a high-deducatible health plan, can help keep health care insurance costs under control and provide employees with a flexible, tax-advantage way to pay for medical expenses. Both employer and employee deposits to HSAs avoid all federal income and payroll taxes.
Anyone else have any to share?
Of course always talk to your accountant or tax person before listening to me. I am not an accountant, a CPA, nor a tax professional.
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