Year End Tax Tips...
November 30, 2018
5 year end tax moves for your small business...
Plan ahead! Now is the time to start thinking about getting your business taxes in order. Make sure you understand the big changes in tax reform.
Meet with an accountant now to see if you can benefit from some of the new lower rates by amending your business structure for 2019 (LLC, Sole Proprietorship, Corporation, etc).
Buy capital equipment. If you need any equipment, purchasing by year end enables you to take advantage of accelerated depreciation.
Start a 401K plan. You get up to a $500 tax credit for start up costs just for setting it up...even if you don’t offer matching contributions.
Work opportunity tax credit (WOTC). This federal tax credit is available to you for hiring & retaining someone the government classifies as having significant employment barriers (i.e. veterans, ex-felons, etc.). 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 2019.
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.