Small Business Owner Tax Tips – Part Two

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Small Business Owner Tax Tips Part Two
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• Accounting strategies that can help reduce a tax
  burden are welcomed by all small business owners,
  and while the following tips are all viable,
  youd be wise to discuss them in detail with your
  tax advisor, as naturally, each business has its
  own unique requirements
• Discuss possible equipment deductions with your
  tax professional
• For new or used equipment for your business
  thats placed into service before the year ends,
  you could be entitled to a federal tax deduction
  of up to 1.04 million. Additionally, depending
  upon the type of equipment bought and when its
  being used, small businesses may be able to take
  a 100 deprivation deduction.

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• Be charitable
• Aside from helping your business to become
  socially responsible, contributing to charity can
  also provide you with a tax deduction, which is
  typically equal to the fair market value of
  whatever has been donated. Review this as a
  strategy with your tax advisor though, as the
  rules may be different for pass-through
  businesses.
• Discuss PPP loans to understand how they will be
  taxed
• Authorizing small businesses loans to help them
  pay employee salaries and other expenses, the
  Paycheck Protection Program was created by The
  CARES Act, and some businesses may now be able to
  request for them to be forgiven.

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• Think about when to pay back payroll taxes
• Of course, you dont need to think about this,
  but your tax professional will certainly need to.
  Allowing businesses to defer paying their 6.2
  share of Social Security payroll taxes incurred
  between March 27th 2020 and the end of 2020, The
  CARES Act helped out many businesses in a big
  way, but half of those deferred funds must be
  paid back by the end of December 2021, with the
  remaining half due by the end of December 2022.
  Devising a strategy for paying these back is
  vital if you want to plan your taxes and
  outgoings more effectively.

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• Lost out this year? Make the most of it
• Many small businesses struggled in 2020 (and
  continue to do so), but there may be light at the
  end of the tunnel for some. Some small businesses
  may be able to apply a net operating loss
  generated in 2018, 2019 or 2020 to income from
  the past five years to receive an instant refund,
  and while it may sound counter intuitive, your
  tax expert may even advise you to incur more
  expenses to increase your losses.

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• There really is no better time to consult with a
  tax professional, and if youve had a tough year
  due to the pandemic, doing so could help you have
  a more positive future by relieving some of your
  tax burden.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.