5 year-end tax strategies for your small business

It’s that time of year to start thinking about your 2011 taxes and what moves you might be able to make to save in taxes! Here are 5 ways to cut your 2011 business taxes: 1. Equipment Deductions – The legislation enacted at the end of 2010 already provides a very generous write-off for business owners in 2011. Buy your new equipment and place it in service before 2012. You can combine an enhanced Section 179 deduction with “bonus depreciation”. For 2011, the maximum deduction for qualified equipment is a staggering $500,000 and does not phase out until $2,000,000. The bonus depreciation for the equipment, which was previously 50%, increases to 100% for qualified assets acquired and placed in service before the end of 2012. Since it is expected that these two breaks will be downsized in 2012, take advantage of this tax break before 2011 is over! 2. Bad Debts – Most business owners have the most trouble collecting ...

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Are Layaway Plans A Good Idea?

Over the past 15 years, we have seen countless numbers of people put themselves in real financial trouble by using credit cards to charge items that they really couldn’t afford at the time they bought the merchandise.   I can remember growing up as a kid that many of the department stores offered something called a layaway plan, but I really didn’t understand it at the time.    With Wal Mart’s recent announcement of layaway plans this year, you may see this trend come back en vogue as an alternative way to purchase merchandise. Layaway is really a nifty way to obtain merchandise or products without needing to have the entire balance of money at the time of purchase.   It is really an entirely different process from credit cards in a significant way.     The main reason is you don’t get to enjoy the item when you make the down payment.   You only get to enjoy it when you actually pay off the ...

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Personal Finance 101: Generation X Series – A Vacation Or College Education

Generation X is classically defined at people born between the years 1965 and 1979.    Pretty much those of you in your early 30’s to the mid 40’s.  However, having given personal financial advice to thousands of people, I can tell you that many of you who were born 1960 to 1964 fit within the Generation X type of financial and personal attitude.   Since I am 42 and have had a good deal of financial success, I’ve noticed some big mistakes that I see my generation making with their money and how they think about money.    This week I wanted to discuss the mistake of spending too much on vacations and not enough saving for college education. Where do you think we should take the kids away for spring break this year?      Should we go away for Thanksgiving or would it be better during the holiday season?    I know the children have sports and camps over the summer, but wouldn’t it ...

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