Right now, the US is facing a massive tax overhaul, and with news out that the Republican-controlled congress has passed a windfall of wonderful loopholes, ambiguities, and other seemingly bonuses to help businesses in the long run. This tax reform wasn’t just for the regular C-Corporations, but also the sole proprietorships, LLCs and the S-Corporations as well.
However, the new tax reform is seemingly long in the provisions, and that’s why you need professional tax preparation professionals to help you when it comes to your tax return. It’s important that your business has the right professional tax software in place to take advantage of every tax tip, including that of those, you may have forgotten.
Today, we will go over the tips your business may have forgotten to include for this upcoming tax return; let’s get started!
Forgotten Tax Tips that Will Help Your Business
1. Section 179 Deduction
Most businesses tend to forget about the 179 deduction in which specific property can be deducted up to $500,000. For example, if your business has a brick-and-mortar location where there is manufacturing and production for goods produced, or even property that used expensive computer equipment, then you may be eligible to take this deduction. This deduction also includes a 50 percent depreciation bonus.
2. Deduct your Startup Expenses
If you happened to go into business this year, it’s important to remember that you can deduct up to $5,000 in qualifying start-up costs, and additional $5,000 in organization costs.
3. Deduct Travel, Meals, and Entertainment Accordingly
Most businesses already know that they can deduct meals and travel from their business expenses, but you have to remember the rules on these deductions. Business travel can typically be deducted up to 100 percent, but it’s important that all the receipts are in order. When it comes to meals, and entertainment expenses, you can only deduct 50 percent.
4. Independent Contractor Deduction
Most businesses today often outsource a portion of their labor pool to contracted workers. In the chaos of things, businesses tend to forget to remember to deduct these contractors pay in the form of a 1099.
Your business is allowed to take deductions on both state and local taxes on goods and services you use for your business. You also can deduct licenses and regulatory fees that you are responsible for. This could include FICA, FUTA, and state unemployment taxes as well.
6. Contributions to Qualified Retirement Plans
If you have a business that contributes a payment to your employees qualified retirement plan, then this is tax deductible. This could also be for educational assistance or dependent care assistance.
7. Other Easy to Forget Deductions
There are a few other mentionable deductions that business tends to forget to remember, which include legal and accounting fees, leased equipment, office cleaning, interest on business loans, business repairs, and commissions. All of these are 100 percent deductible, and add up to be a considerable amount in the long run.
In conclusion, tax preparation professionals will help to take the headache out of your business returns. Most of the time it’s about having the right software and people, but it’s also important to remember to check for some of these deductions if you’re the one filing your own business tax return. We hope that you use all of these forgotten tax tips, so you can be more profitable this next year.