Are You Taking Advantage of Small Business Tax Credits & Deductions?
As we continue on full steam ahead into a new year, there are some things that you might consider for your business that may have slipped through the cracks in the past. As a small business owner, there are certain tax credits and deductions that are available to you which can help you save considerably. Hopefully, you’ve hired a professional tax expert to help you with your business and personal taxes. If so, this person should alert you to opportunities to save money. If you’re still trying to manage your taxes on your own, here are some deductions and credits you should keep your eye out for moving forward.
If you are a small business owner who employs fewer than 25 people and pay at least half of your employees health insurance premiums, you may be eligible for this tax credit. There are specific requirements you must meet including the purchase of health plans from a Small Business Health Options Program Marketplace.
This tax credit is available to employers who hire employees from specific target groups. For instance, if you currently employ qualified veterans, former felons, SNAP benefit recipients, or long term unemployment recipients, you may be eligible for these tax credits.
Have you recently purchased a new company vehicle that is either hybrid, electric, or diesel? You may be eligible for this Alternative Motor Vehicle credit. This credit applies to both personal and business-related car purchases. You may take this into consideration when purchasing your next vehicle.
You’re already deducting the salaries paid to your full-time employees, but did you know that you can also deduct some of the money you pay to contract or freelance workers? Be sure to issue 1099-MISC to any contract employees receiving $600 or more from you in the last year.
Many small business owners choose to operate their companies out of their own homes. This is a great way to keep costs down and streamline your home and professional lives. Did you know that if your home is used as the exclusive office for your business you can deduct some of the expenses associated with operating it out of your home?
Some Operating Costs
Should you choose to rent an office rather than work from home, you can also deduct some operating costs including rent or mortgage interest, utilities, supplies, and rent owed on business-related machinery or other equipment.
Are you taking full advantage of all of these opportunities? If you’re managing your taxes on your own, there’s a good chance that some or all of these may be falling through the cracks. Remember, you don’t have to go it alone. By investing in a high-quality accounting service like Fix-It Accounting you can take advantage of years of training and experience to make the most of your money and grow your business. For more information, contact us today.