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Continuing our effort to provide you with valuable, practical tax information, we will periodically update this page with useful income tax tips and income tax advice from the best sources — information on issues that you commonly deal with. Be sure to check our newsletter from time to time to stay on top of the latest and most effective tax strategies.
CompleteTax will provide income tax tips that will help you save money when it's time to file your tax returns. It's a good idea to use a well planned strategy so that you aren't surprised in April. Using CompleteTax Income Tax Preparation Software and keeping good records could mean the difference between paying a large chunk of money in April and receiving a big refund check. Use our income tax tips as part of your ongoing preparation.
Business Owners Should Consider Year-End Capital Asset Purchases
When the crystal ball drops in Time Square on New Year's Eve, the amounts available under two crucial tax provisions-bonus depreciation and the expensing election-will drop as well. Currently, business owners have an almost unparalleled opportunity to turn a capital asset purchase into an expense that can be fully deducted in the year of purchase. By taking advantage of the bonus depreciation and expensing election, you can greatly reduce your true cost of purchasing the property. It may even be possible to generate an NOL and obtain a refund of taxes paid in previous years.
These options aren't for everyone, but you owe it to yourself to investigate the possibilities. To learn more, read our discussion, Now May Be the Time to Buy Capital Assets.
First-Year Expensing of Capital Assets
Until the end of 2011, most small business owners will be able to expense all (or nearly all) of the capital assets that they purchase. To learn the rules, please read First-Year Expensing of Capital Assets.
Purchases of qualifying property are eligible for 100 percent bonus depreciation-but only until the end of 2011. Find out if your property can qualify for bonus depreciation and how to claim it by reading our discussion, Bonus Depreciation.
Net Operating Losses
The net operating loss deduction is an exception to the rule that "what happens in one tax year, stays in that tax year." While it's seldom positive to have a loss, knowing the rules and strategies for utilizing the loss can help make the most of the situation. Learn more in our explanation, Net Operating Loss.
Deducting Retirement Contributions
As the year draws to a close, it's a good time to consider what retirement plan contributions you want to make. Find out more about your options by reading Deducting Retirement Contributions.
Winterize Your Home: Save Tax Dollars
Although the credit amounts are not as generous as they have been in years past, homeowners can still reduce their tax bill if they make certain energy saving improvements before the end of the year. Purchasing and installing equipment that qualifies for the Residential Energy Efficient Property Tax Credit or the Non-Business Energy Property Credit can save you money-not only on your taxes, but on your energy bills for years to come. Winterize Your Home: Save Tax Dollars
Inflation Increases Many Tax Amounts for 2012
When you arrange your financial affairs to minimize your taxes, it is best to take a multi-year view of your situation. One aspect of this is calculating the impact of tax rates, brackets and amounts on your tax picture. You can get a head start on the new tax year by reviewing the IRS-released annual inflation adjustments for key tax amounts, such as marginal tax brackets and exemption amounts. Inflation Increases Many Tax Amounts for 2012
Increased Inflation Triggers Increased Retirement Plan Amounts for 2012
The amount that you can contribute to your retirement plan is likely to be increased as a result of inflation adjustments announced by the IRS. Although the dollar amount you can contribute to an IRA accounts is unchanged, the income levels for the phase-out of the deduction is increased, which my permit those with higher incomes to claim a larger deduction. Increased Inflation Triggers Increased Retirement Plan Amounts for 2012
Longing for Blue Skies? Consider Attending a North American Area Convention
Conventions, trade shows, seminars and workshops are all excellent ways to expand your business knowledge and business network. In order to minimize the temptation to deduct a foreign vacation, the IRS has stiffer requirements for the deductibility of these expenses. However, conventions held in a North American area country are treated as domestic conventions and the normal rules apply to these expenses. Recently, the IRS released the listing of countries that qualify for this treatment and you will find that numerous topical locales make the cut. Longing for Blue Skies? Consider Attending a North American Area Convention
Past Tax Tips Newsletters
Each month, CompleteTax sends out the informational Tax Tips Newsletter.
Read past Tax Tips Newsletters.