Now that we have our 2010 taxes behind us, it’s time to look at how to reduce your tax burden in 2011….here are some helpful hints:
- In the case where you do not have a commercial vehicle for tax purposes (ie. Section 179 deduction or depreciable company asset), it is important to log the amount of mileage that you use for business purposes on a daily basis.
If you are someone who needs an organizer or mileage book to keep in your car to help you track monitor mileage on a timely basis, please do. However, if you are iPhone or iPad user, there are some great apps that you can download which are specific to helping you track business mileage as well.
- Qualify some of your purchased property in 2011 as Section 179 deductions instead of depreciating over longer periods of time. If you are not sure which of your purchases qualify, just ask us!
For example, the total depreciation deduction (including the section 179 expense deduction) you can take for a passenger automobile (that is not a truck or a van) you use in your business and first placed in service in 2010 is $3,060. The maximum deduction you can take for a truck or van you use in your business and first placed in service in 2010 is increased to $3,160.
- A qualified IRA can lead the way today!
As always, it’s a pleasure to be of service to our clients….call us today and let’s get started!