You have very little time left to impact your 2007 taxes. Here is a meat-and-potatoes list of last-minute opportunities.
1. Find Cash in Your Business Vehicle
Do you own (rather than lease) your business vehicle? If you own the vehicle, you might have some vehicle cash available.
Answer this question: if you sold your business vehicle today, would you have a deductible loss on the sale?
How Jill Harris pockets $10,800. Jill Harris has been in business for 11 years, during which she
converted her original personal car to business use;
then traded in the converted car on a new business car (car 2);
then traded in car 2 on a replacement business car (car 3); and
then traded in car 3 for the second replacement business car (car 4), which she is driving today.
During the 11 years Jill has been in business, she has owned four cars. Further, she deducted each of her cars using the IRS standard mileage rates.
If Jill were to sell her mileage-rate business car today, she would realize a loss-on-sale deduction of $27,000. This loss is the accumulation of 11 years of car activity during which Jill never cashed out because she traded the cars.
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