Entrepreneur's Journal: Some last-minute tax strategies

But there are some things to keep in mind. Here's a look:

Net Operating Losses (NOLs): Typically, you can carry back NOLs two years. But, with new legislation from Congress, the time frame has been extended to five years. However, the fifth year is limited to 50% of the taxable income.

This means you could be eligible for refunds from the IRS. To do this, you'll need to file amended returns.

Section 179 Deduction: If you buy a long-term asset (which has a useful life beyond one year), you typically have to depreciate the cost over time. But the IRS has a provision, called Section 179, that allows you to take the deduction in one year. In fact, for 2009, the amount is up to $250,000.

However, there are some tweaks. For example, your company needs to generate net income (but you can carry forward losses to future tax years). Also, some states do not recognize Section 179 deductions.

To get the Section 179 deduction, the assets must be tangible, such as computers, phone systems, equipment, machinery and so on. Furthermore, the assets must be used more than 50% of the time for business purposes.

Next year, the Section 179 deduction is planned to fall to $134,000, unless Congress extends the higher limit.

Bonus Depreciation: If you exceed the limits of Section 179 or do not qualify, you might want to try for bonus depreciation. This allows for a 50% deduction in the first year (after this, you will use regular depreciation amounts). This is only for assets that are put into use by December 31, 2009.

Even if you sustain a loss, you can still get the bonus depreciation deduction.

So far, Congress has yet to extend the bonus depreciation program to next year.

Credits: They are extremely valuable, since they reduce your tax liability dollar-for-dollar. However, it can take some research to find tax credits that apply to your business.

For example, have you heard of the "Work Opportunity Tax Credit"? Under this program, you get a credit if you hire returning veterans or "disconnected" young people.

There are also a variety of credits for energy saving programs.

Get Organized: Record-keeping can be a drag. But, in light of the huge budget deficits and problems with state governments, there is certainly an incentive to find ways to get more tax revenues. So, as much as possible, try to substantiate your deductions.

Resources: There are several good books on business tax planning. But one of my favorites is Taxpertise: The Complete Book of Dirty Little Secrets and Tax Deductions for Small Businesses the IRS Doesn't Want You to Know. It covers the key issues and is easy to understand.

Tom Taulli provides a variety of financial services to business owners, such as business plans, cash flow management and taxes. You can reach him at taulli.com.