Tax Tips for Small Business Owners
Tax Day 2016 is right around the corner, small business owners are finalizing their 2015 taxes and making notes for the new year. With 2016 underway, and taxes on the brain, the team at Tiger Leasing wanted to provide some tips and insight to help save you time and money in the future!
There are plenty of deductions for all kinds of annual expenses your small business can take advantage of. Don’t forget to consider these savvy deductions for your 2016 taxes:
Social security payments can be tough, especially when you’re starting a small business. Federal law requires employers to pay half of employee contributions, resulting in self-employed workers paying out 15.3 percent of net profits in Social Security contributions. To remedy these high expenses, deduct your contributions on your 1040.
When it comes to office supplies, equipment and furniture, you may be in luck. Business supplies can be deducted, along with office-furniture acquisitions. Bankrate lists several options for how to deduct your expenses, including 100 percent during your year of purchase or slowly over time.
Automobile travel can be a costly business expense, but also offers rewards during tax time. With proper documentation, you can often deduct total mileage, gas, repairs and insurance. Even leased cards are eligible.
Referred to as “section 179 property,” small businesses are able to deduct up to $500,000 of eligible business property. TurboTax cites some eligible deductions such as:
· Off-the-shelf computer software
· Livestock or horticultural buildings
· Manufacturing, transportation and production-related property
· Business or research facilities
Charity Stock Contributions
If your business routinely makes charity contributions throughout the year, there may be a way for you to maximize these donations. Instead of contributing money, donate appreciable stocks. Then if your stock increases in worth, you are able to deduct more than you contributed at tax time.
Consider the Healthcare Tax Credit
According to TurboTax, one little-known tax tip for small business owners is the healthcare tax credit. Offered on a sliding scale, businesses with fewer than 10 full-time employees that have average annual wages under $25,000 are likely to receive the most benefit. Use form 8941 to calculate your edibility and determine if you can carry the credit forward from previous years.
Wondering how an equipment lease can help earn you tax savings? Try our Tax Savings Lease Calculator to see how much you can save! Then, contact a Tiger Leasing representative to discuss the equipment financing solution that's right for your business in 2016 and beyond!
Labels: Business Tips