2011 tax planning – Keeping your eye on the ball as the season heats up
Abstract: Whatever contractors do in the coming year will have a big effect on their 2011 tax bill. So it’s important that they keep their eye on the ball as the months progress — particularly in light of tax law changes that were passed last year. This article discusses these changes as they affect bonus depreciation, the Section 179 expensing deduction, and which of these options might provide a bigger benefit in a particular situation. Several other tax breaks are mentioned, while a sidebar shows that it might still be possible to qualify for a retention credit even though the HIRE Act of 2010 hasn’t been extended.