Are You Ready For Your Taxes To Be Prepared?Posted on January 30, 2015 by
April 15th — tax day — will be here before you know it. Actually, most businesses need to file by March 15th and there are a number of special things small-business owners need to be aware of when preparing their taxes this year. Let’s take a look at four areas that may affect your business’ 2014 tax return.
The Affordable Health Care Act
Most people know that businesses with more than 50 employees will be heavily impacted by the Affordable Health Care Act. But what about companies with only a few employees? It turns out that if small companies want to provide health insurance for their employees, they may be eligible for increased tax credits this year. Check it out with your CPA.
Section 179 Tax Deduction
The Section 179 Tax Deduction allows business owners to write off equipment in the same year they bought it. But the $500,000 limit of 2013 was reduced to just $25,000 for tax year 2014. However, Congress passed the Tax Extenders Bill in mid-December, restoring the $500,000 expense limit. President Obama is expected to sign it into law, but has not done so yet (see “Tax Incentives Extended,” below).
The bill only extended the increased deduction for tax year 2014. It goes back down to $25,000 for tax year 2015. That means if you plan to purchase equipment, software, or vehicles for your business in excess of $25,000, you only have until December 31 to do it. To determine exactly how much you’ll be able to deduct on your taxes, you can use Crest Capital’s free Section 179 calculator. To claim the 179 deduction, you should use IRS form 4562. Check with your CPA to see how this may help with your deductions.
The way you structure your business can affect your taxes, with the least tax-efficient structures being sole proprietorships and C corporations. Discuss with your CPA if your business structure is the most tax-efficient for what you do.
Tax Incentives Extended
A total of 55 tax incentives for small businesses expired this year, but Congress passed measures to extend them and make them retroactive for 2014. We are waiting for the president to sign the bill into law. In addition to the Section 179 Tax Deduction mentioned above other primary incentives that will impact small businesses are the Research and Development Credit, Bonus Depreciation, and Accelerated Depreciation for Qualified Leasehold Improvements.
Small-business owners got good news on the tax front this year, but because some of these breaks were announced at the last minute, you’ll need to move quickly to take advantage of them. Check with your CPA to find out if any of these are good news for you!
Last – Are You Behind in Keeping Your QuickBooks Up?
The Small Business Advisor can assist you with data entry to keep you up to date. We have three levels of programs to provide you and your business with the proper training and/or data management you need to allow you to be more efficient in your business.
If you have any questions on QuickBooks® 2015 or to help you decide if you need to upgrade, please feel free to call 770-356-1234 and ask for Karen, your Certified Pro-Advisor.