The new tax reform act has a lot for small to medium-sized businesses to consider when planning ahead for their taxes. We will go over some of the best practices to help minimize your tax bill this year, no matter where you are located.
1. Small Business Health Insurance
Health insurance is all the talk these days, and there is a tax credit to help you provide it to your workers. Be sure to collect new estimates for your business’s health insurance. The new tax law may have even lowered the cost of your insurance. Even in this case, providing health insurance can lower your overall tax bill effectively. You can receive a credit for up to half of your portion of the health insurance payments, depending on if you meet certain stipulations.
For more on the IRS’s rules for healthcare
click here.
2. The Work Opportunity Credit
Would you like to hire some new employees? This credit is a great incentive for you to begin the hiring process. However, it may end on December 31, 2019. This means get your hiring in before then. Hiring qualified veterans is a bonus, along with members of other special groups. You must fill out several special forms during the hiring process in order to qualify.
3. Small Business Pension Plan
Pension plans are in high demand for qualified workers, even in small to mid-sized business. They are also a good way to attract the most talented pool of hires, along with receiving a tax credit for the costs. These plans are capped at 50% of your cost, but that’s more money for your business.
4. Depreciation Deductions
Depreciation is a common tax deduction among business owners. It makes it possible for you to write off the wear and tear of certain kinds of property. The first-year bonus depreciation deduction has been increased to the full amount. This allows you to deduct the full amount of eligible property purchases and equipment, instead of writing off part of the expenses. However, this deduction is temporary and is scheduled to last until 2023. After, it will decrease bit by bit each year.
5. Hire the Right Accountant or Bookkeeper
You may be able to do your own personal taxes without any help. However, your business’s taxes are far more difficult. Tax policy is complex and you need an experienced professional to help deal with it all as much as you can. Research professional bookkeepers and accountants in your area or at least in your state. Tax laws change from state to state. Check out their referral, experience, testimonials, have they prepared taxes for businesses like yours?
Small to Mid-sized Business Taxes in Houston
If your Houston based business needs help filing your 2019 income taxes,
contact us.
