(credit: CBS)

by Barry Steiner CPA (Former IRS agent)

Managing a tax burden has never been more difficult, whether you’re managing your individual tax rates, the rates on your investments, the taxes on your privately held or pass-through business, or the income of executives and shareholders at your company. Lawmakers have been aggressively using the tax code to try to get the economy back on track, and there are now more ways than ever to reduce your tax liability – however, all of them take planning.

7. Invest in business equipment

Business owners have a chance to save on taxes while investing in their businesses this year. Recent legislation doubles the bonus depreciation tax benefit for business property placed in service before the end of the year. You can fully deduct the cost of eligible equipment on this year’s return if you place the equipment in service by Dec. 31. To qualify, the property placed in service must be new and generally have a useful life of 20 years or less.

Your Weekly Tax Jokes

“Last night in his speech, President Bush called for a complete overhaul of the tax code. He said he was shocked to find out that some millionaires in this country were still paying taxes.” – Jay Leno

“65% of people say that cheating on your income tax is worse than cheating on your spouse. The other 35% were women.” – Jay Leno

“President Bush’s tax returns are a little different. He claimed the Christian Right as dependents, he declared the 2300 election as a gift, and he tried to write off all the mileage he got from 9/11.” – Bill Maher

“Alan Greenspan, our Fed chairman, said that Bush’s budget is such a mess that we’re going to have to either cut spending, raise taxes or start a national sales tax. You know what that means – war with Syria.” – Bill Maher

Click here to see previous Tax Tips from Barry R. Steiner. Check back next Wednesday for another free tax tip – one tip for each week of the tax season until April 17th.

Barry R. Steiner is a Chicago-based CPA and former IRS Agent. He’s the author of the best-selling income tax guide “Pay Less Tax Legally” and was a regularly featured guest on ABC-TV’s “Good Morning America”. Barry has maintained his own tax practice for the past 40 years, and most recently has authored two e-books: “Infernal Residue” and “Kiss My IRS”. More info at KissMyIRS.com »