Age Limit for Traditional IRA Contributions

 The age limit of 70 and 1/2 for traditional IRA contributions is now gone effective for 2020 and beyond. Now it doesn't matter how old you are, you can still make a regular IRA contribution as long as you have earned income. 

Set up a Sole Proprietorship Instead

 When you start a new business, think about the simplest form first like the sole proprietorship. This method does not require another tax entity because you just file a schedule C with form 1040 reporting your business income and expenses. You don't really miss out on most tax benefits with this form of business. Putting on the corporate shell does give you more liability protection, but you can also buy liability insurance to cover that risk. You don't have to pay legal fees to set up a sole proprietorship. You also don't have to pay annual fees of $50 to the state. Some taxpayers like to set up a separate business entity (LLC, Sub S or C corp) and put it on the shelf for use someday. I feel this is a bad idea as the IRS looks for the business tax forms to be sent in every year even if there is no activity, and you also still have to pay the state's annual registration fees. 

Donating Business Property

 When you donate business property to a charity, you can only deduct your cost or basis. Most business equipment has a basis of 0 because of depreciation so donating old business equipment to charities doesn't give you much of a tax break. You can deduct the cost not the retail value of donated inventory. This stands in marked contrast to donating clothing and household items where you can  deduct the fair market value which is usually much less than the cost.