Posted on May 27, 2009 in Business Law
1) For bonus depreciation, purchase new equipment but December 31, 2009 and place it in service by that date in order to receive a deduction of 50% of the total cost of the equipment in the first year.
2) If a C Corporation elected to be taxed as an S Corp in either 2002 or 2003, the normal ten year waiting period to hold assets with unrecognized built-in gains is shortened to a seven year waiting period for those two years only. Therefore, sales of those assets held at the time of the S election in 2002 may be sold in 2009 without paying the maximum 35% corporate tax. The same with assets held in 2003 and sold in 2010.
3) As soon as a taxpayer has filed a 2008 tax return containing a net operating loss, it can begin the process of claiming a refund to get cash in its pockets and the loss can now be carried back three, four or five years.
4) One of the most important is things that happened is that if you begin to restructure your debt you can take up to four years to write off the difference between the new debt and the old debt which ordinarily would be calculated as “profit” on your income line for taxes, even though you didn’t receive anything.
If you’d like more information on any of these steps, feel free to call or write us, and we are happy to work with your business to talk about what steps you can take to stay ahead of the curve. We take care of business. Rabouin |Zeman Law Group Contracts, restructuring, entity formation and more!970-769-0030
Tax Tips for Small Businesses