March 1, 2019
If you're like most small business owners, you have not yet filed your taxes. And as the calendar shifts to March...the countdown (& maybe a little bit of panic) begins. There's no need to fear...JAM is here, and you've still got time to get everything in order!
Here are a 5 quick tips to help you maximize your refund and remaining time:
Now is the time...no more dillydallying! Start getting your business taxes in order!
Make your appointment now with a Tax Accountant (or CPA). It is okay to use a Tax Preparer for your personal taxes, but you should use a Tax Accountant (or CPA) for your business. Tax accountants have experience in audits, financial statements, business regulation & requirements, etc.; their broader educational background is more aligned with your overall business needs.
Do a little homework...make sure you understand the big changes in tax reform that may impact your small business:
If you purchased capital equipment in 2018, you may be able to take advantage of accelerated depreciation.
If you started a 401K plan in 2018, you get up to a $500 tax credit for start up costs just for setting it up...even if you didn’t offer matching contributions.
If you hired & retained someone the government classifies as having significant employment barriers (i.e. veterans, ex-felons, etc.), you may qualify for a Work Opportunity Tax Credit (WOTC). If so, you can get up to a $9600 tax credit on their compensation against your owed taxes. You can also go back a couple years if you failed to take advantage of this credit in prior years. It is currently set to expire at the end of this year, 2019.
When you meet with your accountant, ask whether or not there is a benefit to you amending your business structure now for 2019 taxes next year (LLC, Sole Proprietorship, Corporation, etc). Not all businesses are set up correctly or in a way most beneficial to their business based on current tax laws.
Don't wait until year end to think about taxes for next year! Think about taxes all year long. Particularly for small business owners, tax planning should be year-round in order to ensure you are always making the best decisions to maximize tax-saving opportunities.
For small businesses, every dime counts...so make sure you are taking advantage of all of the benefits the government has to offer!
*Disclaimer: These tips are not intended to advise you on your taxes, but rather to provide additional insight & knowledge as you work with your tax expert.