Tax Hacks for Small Business Owners
For many small business owners tax season can be a hassle, but if you try these tax hacks, the process may become a lot easier to deal with.
Small businesses always look for ways to save money and maximize deductions throughout the year. And tax season is no exception. The beginning of the tax season is among the great times to save at tax time, and is often overlooked due to business owners pushing off their taxes until the very last minute. If you want to save as much money as possible, make sure that you use these tax hacks for your small business.
Deduct section 179 property
Small businesses can deduct the full expense of certain property as a business expense in the year the business began to utilize it. This kind of deduction is referred to as section 179 property and can cover up to $500,000 of eligible business property. What does carry forward mean? In the Layman, it’s a rule that allows your business to save an unused deduction for a later time. Learn more about it here!
Deduct stock contributions that appreciated
If your small business made charity contributions throughout the year, you can deduct these from your taxes. If you want to optimize these contributions, you should donate appreciable stocks instead of cash. Your business can deduct the current worth of the stock instead of the price at which you purchased it.
The health credit forward
If your business employs fewer than ten (10) people full-time with wages that average under $25,000 per person, you can get the most benefit from this hack. To calculate your eligibility, obtain Form 8941. If your business did not owe taxes from the past year, you may have the option to carry the credit forward.
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