Minimizing Tax Liabilities for Small Businesses Rosemarie Klotz BALCONY

Tax Tip #1 DEPRECIATION VS. EXPENSE If you buy new business equipment, under Section 179 of the Internal Revenue Code, you can expense up to $250,000 of your purchase this year if the total purchase is not greater than $800,000, instead of depreciating it. 2

Tax Tip #2 Rehabilitation credit available for restoration of qualified business buildings and certified historic structu res… 3

Tax Tip #3 Disabled access credit for bringing facilities into compliance with the Americans with Disabilities Act. 4

Tax Tip #4 Credit for providing low income housing. 5

Tax Tip #5 Credit for developing orphan or generic drugs. 6

Tax Tip #6 Credit for using alternative fuels. 7

Tax Tip #7 Disaster relief when an area is declared a national disaster – includes special casualty loss provisions, filing extensions, and more. 8

Tax Tip #8 Energy credits for construction of energy efficient homes, manufacture of energy efficient appliances, and more. 9

Tax Tip #9 Alternative motor vehicle credit – for qualifying hybrid, fuel-cell, plug-in electric, and other alternative motor vehicles used for business. 10

Tax Tip #10 Credit for pension plan start-up costs. (Plan contributions funded by employer are also deductible). 11

Tax Tip #11 Work Opportunity Credit for hiring certain targeted groups including unemployed veterans, individuals living in disadvantaged areas, and disconnected youth (age 16-25) not attending school or employed. 12

Tax Tip #12 Credit for employer-provided child care facilities and services. 13

Tax Tip #13 Worker, Homeownership and Business Assistance Act of 2009 – companies can offset losses from 2008 and 2009 against profits as far back as

Tax Tip #14 Friendly warning :In order to close tax gap, the Internal Revenue Service has hired many new agents to focus on small business owners. The focus will be on the maintenance of back-up documents for expenses. 15

 Questions?  Please feel free to call with any questions that come up in the future. H&R BLOCK is here to help. Phil Amundsen Westchester District Manager (914)