Corporate Tax Issues
Corporations, Partnerships, S-Corporation Tax
If you are a business owner, then it is your job to make sure that taxes are paid. It does not matter whether you have a sole proprietorship, LLC or a corporation. Making sure your taxes are paid and properly calculated is essential for your company's financial health. It also ensures that your company does not incur any tax liability or legal issues.
Business tax issues can be very complex. There have been changes recently made in tax legislation, and this makes tax issues even more complex. If you do not have knowledge of these changes, then it can be very easy to make a mistake that can be costly for your company. Fortunately, our company will be able to assist you with calculating your business taxes. This will not only prevent you from making serious mistakes, but it will also allow you to take advantage of all of the deductions you may be eligible for.
New Legislation Makes It More Difficult To Prepare Your Business Income Taxes
There are new tax laws being passed each year that affect both businesses and individuals. However, unlike the provisions that have been made for individual taxpayers, the benefits and incentives for corporations may not be permanent for corporations. It is essential for you to create a plan that allows you to make the most of these temporary benefits. Our firm has followed these changes closely and wants you to take advantage of all of these incentives.
Changes In Vehicle Deductions Have Details That Are Easy To Miss
Vehicles that are used for business purposes have always been eligible for tax deductions. However, there have been new changes made in regards to lease inclusions and depreciation reductions. Vehicle expenses can be calculated with the mileage costs. The repairs, oil changes, storage, maintenance and lease payments can also be used to calculate vehicle expenses. These expenses are known as actual expenses. The type and size of the vehicle will determine which deductions will be taken. Whether the vehicle is leased or is a luxury car will also determine how much can be deducted from taxes. It can be difficult to decide whether the deductions should be calculated based on actual costs or mileage cost. Our firm can help you make the best decision for your business.
Healthcare Reform Has Had An Affect On Business Owners In The United States
The United States Supreme Court has ruled that the Affordable Care Act is constitutional. This has not only had an effect on individuals, but it also affects businesses. Businesses will have to meet the requirements of the Affordable Care Act. It does not matter whether the benefits are being paid for by the employer or employee.
The provisions for small business owners are slightly different. Small businesses that have fewer than 10 employees, and the average wage does not exceed $25,000, then taxable employers can deduct 50 percent of the health insurance costs. Non-profit employers can deduct 35 percent of the health insurance costs.
Significant Tax Incentives Can Reward Employees
Employers are rewarded for giving jobs to people who are in need. They are also rewarded for providing services to their employees. The Work Opportunity Tax Credit, or WOTC, gives tax credits to employers who hire people from groups that are hard to employee. The Heroes Act of 2011 has also extended this tax credit to businesses who hire veterans. These companies can get a tax credit up to $9,600.
The Relief Act has permanently given extensions for tax credits provided to businesses that provide childcare to their workers. Businesses can deduct 25 percent of the cost of childcare. They can also deduct 10 percent of the childcare referral and resource costs.
Tax Hikes May Negatively Impact Business Owners
Some of the tax changes will impact businesses in a negative way. The rate of personal holding company tax has been permanently raised from 15 to 20 percent. The rate of accumulated earning tax has also been permanently raised from 15 to 20 percent. It is important that you and your employees take note of these changes.
Call Us For Your Business Tax Needs
Our firm has an in-depth knowledge of these tax changes and has years of experience in providing tax services to clients.