If you are on the calendar-year basis for tax purposes, the time for 2006 tax planning is about to expire. Here we have compiled a meat-and-potatoes menu of last-minute tax planning opportunities.

1. Find Hidden Cash

Do you own (as opposed to lease) your business vehicle? If the answer is “yes,” you could find some vehicle cash that you did not know you had, regardless of the method you use to deduct the vehicle. For example, you might find this cash if you use either the actual-expense method or the IRS mileage-rate method.

Answer this question: If you sold your business vehicle today, would you have a loss on the sale? If you’re not sure, read “The Back-End Vehicle Deduction” on page 5 of last month’s Tax Reduction Letter (Vol. 15, No. 11).

Example of a big cash find (a true story with a fake name). Harriet Wilson has been in business for 11 years. During her years ... Log in to view full article.