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  • Answer Upon - Ten Tax Planning Ideas for Small Businesses

    Up Your Income Next Week: 13 Ways to Have a Sale
    Nothing gets people buying products or programs like a special promotion in your e-zine. Now, I know right now you're thinking, "I can't have a sale on my products or services. That's sooo cheesy!"Au contraire, mon frere. It's all how you position it. Here are 13 ideas to consider. Choose one that would work for your business and give it a try.IMPORTANT: You'll need to put some type of time limit on the offer to encourage folks to buy now and not later. It's also better if you explain to your readers WHY you're having the sale. You're not Wal-Mart and you can't just drop prices whenever you feel like it. Instead, give your prospects a reason. (Even a funny on
    set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employ
    Competition - The Revolution That Creates A Legacy
    There's a quiet revolution going on in corporate America. It's not coming exclusively from the top of the leadership pyramid, although more and more CEOs are leading the way. It also starts at mid-level and blossoms up and down the company structure, growing in power as the increases in profits and productivity prove it works.This revolution is a shift in the way we think about competition. This shift changes the way we work together and how we think of each other and our jobs. Instead of looking for ways to stop, hold back, or prevent something from happening, "positive competition" in the world looks for ways to make things work and solve problems in a win-win

    1. S Corporation: Set up an S Corporation to avoid self-employment tax on profits. If you conduct business as a sole proprietor, a partnership, or a limited liability company the first $94.200 of 2006 profits are subject to a self-employment tax rate of 15.3%. The profits in excess of $94,200 are subject to a Medicare tax rate of 2.9%. These self-employment tax rates are in addition to paying income tax on the profits. An S Corporation is not subject to self-employment tax on the profits earned.

    2. Bad Debt Expense: A reserve for bad debts is not deductible, but you can write off accounts receivable in the year in which they become uncollectible. Be sure to take advantage of writing off all those uncollected accounts at year end. If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%). You can write off that amount at the time you turn over the receivable to the agency.

    3. Medical Expense: For 2006, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.

      If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employe
      The Benefits of Free Advertising
      Do you have something that you want to sell? How about an opportunity that you want to share with the rest of the world? If so, there are many ways that you can get your point across. But before you can persuade people to buy from you or join what you are offering, you need to consider how you are going to advertise. There are quite a few methods for doing this, and all of them offer benefits as well as drawbacks. One of the first things that you will want to consider is what free advertising has to offer. As you can imagine, there are quite a few benefits that will be offered to you if you decide to rely on free advertising.First off, the major benefit of free adve
      lf-employment tax rates are in addition to paying income tax on the profits. An S Corporation is not subject to self-employment tax on the profits earned.

    4. Bad Debt Expense: A reserve for bad debts is not deductible, but you can write off accounts receivable in the year in which they become uncollectible. Be sure to take advantage of writing off all those uncollected accounts at year end. If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%). You can write off that amount at the time you turn over the receivable to the agency.

    5. Medical Expense: For 2006, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.

      If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employ
      The Sound of Business - Part I I
      Creating a 'kick ass' Sonic Personality© for your business requires that your business have a personality in the first place. Of course every business has one, whether you are aware of it or not, and this is a real danger. Your customers' understanding of who you are, and what you do, as a business, may be very different from the vision you have of yourself. This can be a very serious problem for owner-managed businesses, where the personality of the entrepreneur oft times gets substituted for the personality of the business - big mistake! So what's the first step in crafting a marketable business personality?What Business Are you Really In?OK
      writing off all those uncollected accounts at year end. If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%). You can write off that amount at the time you turn over the receivable to the agency.

    6. Medical Expense: For 2006, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.

      If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employ
      The ABC of Superior Customer Service
      If you want your front-line staff to remember the essentials of customer care, there’s no better way to teach them than with the ABC of Superior Customer Service.A is for Attention to Detail. Because when customers know you care passionately about the little things, they’ll know you care a great deal more about the big things.B is for Benefits which is all your customer wants you to tell them.C is for Complaints, your free marketing service.D is for Dedicated staff, because when the team is fully engaged, customer loyalty goes up by two-thirds.E is for Empowerment which means trusting and training your staff to do whatever it takes to thr
      an deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.

      If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employ
      Improve Your B2B Direct Mail Response Rates With Premiums
      Premiums are an effective way to increase your direct mail response rates. Whether you are selling a product or service directly through the mail, or whether you are using a sales letter to generate leads, premiums can help you boost response, increase conversions and motivate buyers to pay now rather than later. A premium is simply an item that you offer to your buyer to take action. As Dick Benson has said, “a premium is a bribe to say yes now.” Premiums are effective because, dollar for dollar, they are better incentives than cash discounts. Given the choice between receiving a free Apple iPod or a $200 discount on their order, most buyers will op
      set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employees.

    7. Equipment Expense: For 2006, Section 179 of the Tax Code lets companies deduct up to $108,000 of new equipment, subject to certain limits. Passenger vehicles are excluded from the expensing election. A passenger vehicle is defined as having a loaded gross vehicle weight of less than 6,000 pounds.

      The tax code also allows an accelerated method to depreciate the remaining value of that equipment – it’s faster than the straight-line method of depreciation.

    8. Home Office Expense: Write off home-office expenses. You can take this deduction even if you use the space for administrative purposes, as long as there is no where else you can work. When you use one room in your six room home as an office, you can deduct one-sixth of your costs for utilities, security, homeowner’s insurance, etc. as well as all costs for the room such as carpeting. Although you can also claim the depreciation on your home used for home office, you should consult a qualified tax advisor prior to doing so to understand the impact it will have on the exclusion of gain when you sell your residence.

    9. Travel Expense: Deduct business trips by putting your spouse on the payroll. When spouses are on the payroll, even at low salaries, cost of business trips that include the spouse can be fully deducted. You should also be aware that putting your spouse on the payroll in 2006 will also double

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