The IRS has a complicated process of collecting our taxes each year. Knowing how to navigate through this process is something that any business owner needs to be concerned with.
There are some tax breaks that have already expired, but a few that resulted from policies put into place as a result of the Great Recession are still around. Taking advantage of these can result in a large tax bill savings at the end of the year.
Fox business has a section of their website dedicated to small business articles. In one of these articles they mention a tax break worth looking into,
Start up costs: since 2004, small business owners were allowed to currently deduct $5,000 in business start up expenses. President Barack Obama permanently raised the amount to $10,000 when he initiated the Small Business Jobs Act.
This is just one of the benefits that small business owners can take advantage of for themselves. There are others that are highly beneficial as well.
There is a refund for small business owners that they can get for 50% of the cost of things like vehicles, furniture, and equipment. This percentage was bumped up to 100% for a brief period of time under the Obama Administration during the height of the recession. That percentage has been restored to 50% at this time.
Deductions for cell phones are allowed as well as they are now considered something that is necessary for the growth of small businesses. Looking into writing off the expenses of cell phones for small business makes a lot of sense.
Small parts of the tax code that can be used to the advantage of the small business owner like this should be used. There is no need to pay huge amounts of money to the IRS when some parts of those tax dollars may be reclaimed.
Contact us for more information on how small business owners can save money on their taxes.