5 Tax Filing Strategies for Small Business Owners

5 Tax Filing Strategies for Small Business Owners

Claim the Health Care Tax Credit Mostly all the individual and small business owners are eligible to claim the health care tax credit.

However, you may once talk with your accountant regarding this. It will provide you a good number of savings. However, this benefit applies to the employers who have less than 25 full-time employees, pay less than $50000 every year and at least pay half of the premium of the health insurance of the employees.

Deduct Certain Property It is commonly known as section 179 property. A value of $500000 is eligible to be included as the deduction amount. However, when you start using the property, only in that year you are eligible to deduct the full amount. Thus, it is applied to those who have recently shifted the business or acquired new properties for it. The property can be any house, or it can be any vehicle also as a small business accountant Los Angeles.

Deduct Charitable Contributions Donation for the social and charitable causes are exempt from tax. Thus, if you made any kind of charitable donation, you can claim the deduction for that. However, you must keep the receipts of these donations. If the donation amount will be too big, the IRS official may want to verify the originality of these donations. However, the contribution can be in the form of volunteer expenses and stocks.

Claim the Work Opportunity Tax Credit Several ways are there in which you can save taxes.

One such way is to claim the work opportunity tax credit. If you hire veterans, disabled people, and other disenfranchised groups, then you are eligible to claim these taxes. The amount may vary, but it can be 40% of the first $6000 that you pay to the individual from the mentioned groups. You can talk with a small business accountant Los Angeles regarding the claims.

Claim the Pension Plans Startup Cost Credit Another credit that you can claim is the Pension Plans Startup Cost Credit. If you are a startup and started a pension plan for your employees, then you can apply for this credit. However, the amount is limited to $500 only. Nonetheless, it will recover your initial investment for sure. Thus, you have seen in this presentation some of the credits that you can claim while filing the tax return.

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