If you own and run a small business and need the best tax advice, then the best way is to get in touch with an expert certified public accountant. You may need to pay a few extra bucks but tackling the complicated stuff like taxes will become a hassle-free affair. Moreover, taxes represent one of the biggest expenses for many business owners. Therefore, when so much money is involved, taking assistance from an expert is completely worth it. At Foster Financial we suggest business owners meet an expert CPA like ours at least twice a year to plan the tax moves efficiently.
Have you found your expert CPA? Scheduling a meeting with them soon? What have you planned to discuss with them? We would suggest you to talk about saving the most of your money in 2021! Planning things early can help you make the right moves to save your money. We have brought you a few things that need to consider while planning your tax moves. Have a look:
Make the Most of the Stimulus Benefits
You can discover a number of one-time tax incentives available for small businesses which are powerful and all the credit go to the stimulus bills associated with the pandemic. If your business has been affected by COVID 19 pandemic then you may qualify for the Employee Retention Tax Credit, a refundable credit on payroll taxes. Also, there is the additional payroll tax credit that comes under the Families First Coronavirus Response Act, in case you are allowing time off to employees for COVID-related issues. Again, if you are helping your employees with their health insurance under COBRA, you can take advantage of a tax credit for that. Moreover, if your business has suffered losses during 2020 or 2019, or 2018, you can carry those losses back for claiming taxes paid in the past. See there are so many ways you can save money while generating cash refunds from the government.
Make use of the Work Opportunity Tax Credit when hiring
If you want to bring your staff back to the job as the economy recovers, then you need to understand that there will be several other companies in the race. Here, the Work Opportunity Tax Credit will help you, which you can take against your income taxes. The worth of this credit can range from $1,200 to $9,600 per employee you hire who has been unemployed for more than six months. You can make use of this credit by sharing the cash with the employee as a signing bonus to entice them towards your company and not your competitors.
Try Investing in Capital Assets
This year also applies all the new rules of accelerated depreciation from the last tax reform act from 2017. It implies that small businesses can take away up to $1,050,000 for capital items you buy and place including equipment, technology, trucks, and many other items into service in 2021. You can finance these capital items at the lowest interest rates of today and as long as they are operational by year-end you can get the deduction.
Still, feeling confused and overwhelmed? Then the best way out is to get in touch with an experienced certified public accountant (CPA) like us at Foster Financial today.
Tax Tips for the Self-Employed
Understanding the Child Tax Credit and Its Benefits
Everything You Need To Know About Second Draw PPP Loan