As a small business, you need to take advantage of absolutely everything that can help you turn a profit and be successful. This includes tax season. When played right, there are many credits that can work to your benefit. The problems is, many small business owners often overlook them. This is one of the many reasons that it is wise to turn to a good accounting firm to assist you in preparing taxes and other things like bookkeeping, payroll, financial reports and so on. Mark Dicus & Company is here to talk about some of the tax credits that are so often overlooked by small business owners.
Section 179 Deduction
If you are a small business that is interested in maximizing their tax savings, the Section 179 Deduction is something you will want to take advantage of. It allows businesses to deduct the entire cost of any qualifying equipment or property purchases that were put to use in that year. This can include things like technology, machinery or qualifying assets that were purchased and can be of use in daily operations of the business.
Small Business Health Care Tax Credit
Small business owners often take a large hit when they offer health insurance to the employees that they have hired. However, it is important to know that the small business health care credit can help alleviate that burden placed on small business owner’s shoulders. Small business owners must purchase the health insurance through the Small Business Health Options Program Marketplace to qualify though. If don’t right, this tax credit could help cover as much as 50% of the cost of the health insurance premium costs paid by the employer as an incentive for small businesses to offer their employees health benefits.
Work Opportunity Tax Credit
Another tax credit that is often overlooked is the Work Opportunity Tax Credit. This is a credit that hopes to help encourage small businesses owners to hire persons that fit into different target groups that face difficulty in finding a job. This might include people that are ex-veterans, ex-felons, or those that are receiving government assistance. The tax credit can be sizable and ranges anywhere between $1,200 – $9,600 per employee that qualifies.
Research & Development Tax Credit
Probably the most overlooked of them all is the Research and Development Tax Credit. If you are a small business that is involved in developing new products, processes or software, you might be able tow qualify for this credit. Many small businesses overlook it because they assume that it is only beneficial to tech companies. The trick is to make sure you are documenting your research well enough to qualify for this credit.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
At Mark Dicus & Company, we help small businesses as we ensure they are taking advantage of any and all tax credits that they are eligible for. We help with business advising, bookkeeping, tax preparation, payroll, and more. Call us today!