Although it is only August, tax planning is a year-around job for small business owners unfortunately. So if you’re wondering what type of options that are available for this calendar year, here are some options available:
1. Have you set up a retirement plan for your business? A number of business owners have individual 401(k) accounts, but for some reason they haven’t considered utilizing their own business for tax deferment. Currently this year if you choose to set up one through your business, you can potentially take up to a $500.00 credit for your start-up expenses. Check with your certified financial planner or tax preparer about Form 8881 for the potential tax savings.
2. Are you offering health insurance through your business currently or considering it? The tax credit offers businesses with less than 25 employees and making less than $50,000 in annual wages for everyone involved. There are a lot of strings attached, but if you have been on the fence about this option, speak with your tax preparer to see if the calculations could work in your favor because the savings could be a definite plus as well as building employee loyalty.
3. If your business is in a physical location, did you perform any work to help fulfill requirements of the Americans with Disabilities Act? Your sales need to be less than $1 million and had less than 30 employees, but you can get a credit of up to $5 thousand, which can be a huge return on your investment.
4. Do you have any veterans that you work with? This tax credit is available for U.S. Veterans, dependent upon how many hours they work, how much in wages you’ve paid them, as well as how long the veteran was unemployed before you hired them. This tax credit is good through 2013 at this time, so consider helping the service men who help defend this country, and help your business at the same time too when tax time arrives.
5. If you own a bar and/or restaurant who you pay Social Security and Medicare taxes on, you have the opportunity of getting a tax credit back. Although these amounts may seem minor to you, looking over a year’s time could potentially reveal significant savings in the end.
6. Tax preparation fees are deductible! Quit trying to save money by going the cheap route to save a few dollars. This is a tax deduction that you can take in the year your taxes were prepared.
7. Did you make certain work-related expenses for an employee(s) who needed special assistance to perform the work? These are deductible expenses that not only help those who are disadvantaged, but also help your bottom line too.
About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC. Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®. Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale. He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.
Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details. Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.