Last-Minute Tax Tips

Created 9 years 240 days ago
by Rita Palmisano

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Categories: Financial Fitness
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by Karen Stern

From the new and expanded taxes associated with the Affordable Care Act (ACA) to the renewed tax extenders, tax planning is as essential as ever for your small business, especially this late in the game! Here are some last-minute tax tips for you to keep in mind as you address these issues:

• Utilize the tax extenders. The one-year tax extenders package, signed at the end of December, extended several depreciation or expensing provisions for cost segregation. These include an extension of bonus first-year depreciation, 179 expensing amount election and 15-year recovery. To get the most out of these, check with your CPA.

• Let the ACA work for you. Businesses with fewer than 25 full-time-equivalent employees can take advantage of a larger health care coverage credit. This credit has increased to 50% of group health coverage premiums, but it has also been limited to two consecutive years. Something to consider: If you’re eligible for the credit this year but you think it could provide a greater benefit in a future year, you might want to refrain from taking it now.

• Double-check your deductions. Many small-business owners do not take advantage of all the deductions they are allowed, so make sure you’re getting the most out of your return. This includes the new home office deduction safe harbor, which allows you to deduct some of the cost of your home if you use it as your principal place of business or meet clients in your home.

As with all major tax decisions, be sure to consult your tax adviser. He or she can ensure that your return is filed accurately and efficiently and help you prepare for next year!