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Content about Tax deduction

April 26, 2012
Changes in Repair or Replace Tax Rules (Part 1 of 2)

ARDMORE, Pa. — Are certain expenditures currently deductible or must they be capitalized

ARDMORE, Pa. — In an effort to resolve the controversy over whether certain expenditures made by a drycleaning business are currently deductible as repair expenses, or whether they must be capitalized and deducted over the life of the underlying business asset, the Internal Revenue Service has finally released new regulations.

The IRS’s long-awaited expanded regulations for determining whether an expense must be capitalized because it betters or improves tangible business property or equipment, restores it, or adapts it to a new and different use, will have a significant impact on every drycleaning business that acquires, produces, or improves its tangible property. 

In addition to clarifying and expanding the current rules, the new regulations create “bright-line” tests for applying the repair-or-capitalize standards, provides guidance for accounting for—and disposing of—repaired property, as well as clarifying other aspects of the repair/capitalize dilemma.

January 4, 2012
Fight Trim and Pay Fair Share of Taxes (Part 2 of 2)

PEMBROKE, Mass. — Tax time is here again. Before I give you some tax tips, I want to tell you to pay your fair taxes. I know that not all of you do.

Having said that, you should take full advantage of legitimate deductions.

Some Available Deductions

Basically, profit determination is a process of starting with revenue and deducting all expenses and costs from all activity that went into creating that inflow stream. Any amount of expenditure is deductible if it helped you, in any way, shape or form, to run your business.

Don’t forget to include:

December 5, 2011
Last-Minute Tips to Lower Your 2011 Income Tax Bill (Part 1 of 2)

CHICAGO — The filing deadline for 2011 federal income taxes is not far off, but you still have time to make sure you’ve done everything you can to keep Uncle Sam’s paws off as much of your money as possible. Here are some last-minute ways to do that by reducing your 2011 income tax bill:

Save More for Retirement

One of the most important tax-savings steps you can take is contributing the maximum to your 401(k) or other tax-deferred retirement plan. If you haven’t done so, max out your retirement savings now by bringing your contribution up to the legal limit. For 2011, you may put as much as $16,500 into a 401(k), 403(b) or 457 plan. If you’re over age 50, you may add an additional $5,500.

Every dollar you contribute means you will pay less income tax. Except for Roth IRAs, all contributions to tax-deferred retirement plans are tax-deductible in the tax year for which you make your contribution.

If you can’t come up with the maximum, bump up your contribution as much as you possibly can. It may seem painful now, but you’ll benefit greatly in the future.

June 13, 2011
Trade Show Tax Tips (Part 1 of 2)

NEW YORK — Trade shows are great for bringing together the industry’s most important players and prospects. But all that product-seeking and hand-shaking comes at a cost. Airfares, hotels and restaurant meals represent a hit to your bottom line.

Uncle Sam does offer some respite for the trade-show traveler, however. Prudent and thorough deductions of travel expenses on your income-tax returns can help soften the financial blow.

November 28, 2008
The Bailout’s Breaks: Wall Street Rescue Provides Tax Credits, Deductions (Part 2 of 2)

The Emergency Economic Stabilization Act of 2008 (EESA) is designed to solve the credit crunch in the financial markets, but it’s also one of the biggest tax bills in recent years.

Many drycleaners will be affected by the rescue bill, thanks to almost 300 changes to the tax laws — including tax breaks expected to save taxpayers a whopping $150 billion.

CONTRIBUTIONS AND S-CORP CHARITABLE DEDUCTIONS

November 19, 2008
Prepare for Tax Time Early

Most drycleaners take their paperwork to their accountant just before the April 15th deadline and hope for the best. But by being proactive, you can fine-tune the outcome, anticipate cashflow needs, reduce the chance of penalties and lower accountant fees.

April 21, 2008
Stimulus Package Extends to Small Businesses

WASHINGTON, D.C. — The economic stimulus package that will soon issue more than 130 million consumers tax rebates of $600 to $1,200 will also offer small businesses incentives to buy new equipment.

The government’s approved package includes two provisions aimed at helping small businesses increase capital spending: a huge increase in the Section 179 tax deduction and a bonus depreciation allowance.