Business Tax Strategies
When the financial year comes to a close, it’s important to take into account all the deductions and credits that can help you save money on your taxes. But navigating all of these cost-saving tax strategies can be a stressful process if you don’t know where to begin.
The team at AA Tax & Accounting Services has put together a list of strategies that can help you maximize your credits and deductions.
Take Advantage of the Health Care Tax Credit
If you pay for at least half of your employees’ health insurance premiums, have fewer than 25 full-time employees, and your employees earn an average annual salary of $50,000, then you might be eligible for the health care tax credit. This can save you money on your taxes but is helpful to navigate with the help of a certified public accountant.
Consider Charitable Contribution Deductions
If your business has made any charitable contributions, you will want to deduct these when filing your taxes. A charitable contribution can be anything from donating money, goods, or services to an organization. When these offerings are donated, you can deduct the market value of the contribution when filing your tax return.
Account for Property Deductions
If your business has recently changed locations or acquired a new property, you can take advantage of property deductions. When this happens, you can deduct up to $500,000 of eligible business property. But keep in mind, that you can only use this deduction in the year that you first obtain the property.
Utilize the Work Opportunity Credit
When your business hires employees that are veterans, disabled, or part of another disenfranchised group, you are eligible for the work opportunity tax credit. This can be very beneficial when it comes to filing your tax report because you can receive up to 40% of the first $6,000 paid to a new employee from a disenfranchised group. However, it’s important to note that the size of this credit can vary in different situations.
Offer Child Care Expenses
Do you provide child care expenses for your employees? If so, you are eligible to receive a tax credit! If you pay for child care expenses, the credit will cover 25% of your paid expenses up to $150,000 annually.
Fund an Employee Retirement Plan
If you don’t have a retirement plan set up for your employees, it can be a great opportunity for you to save money on taxes. Set up and fund a qualified plan that is recognized by the Internal Revenue Service and you’ll be able to start taking advantage of the tax savings. There isn’t a one size fits all retirement plan for every company. Our team of professionals can help walk you through the different contribution plans and determine which is best for your business and your goals.
Account for the Cost of Gifts
If you’ve purchased any gifts for customers or vendors over the past year, you have the opportunity to deduct up to $25 per person off the cost of gifts. However, you aren’t able to claim this deduction if the gifts were provided to anyone bearing the same name as your business.
Tax Consulting Services in Cedar City, Utah
We recommend consulting certified public accountants like AA Tax & Accounting Services when making any decisions or changes to your business tax return. We have the experience to guide businesses on the best strategies for maximizing their deductions and tax credits with our accountant services.
The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.