Everything You Need to Know About Your Small Business Taxes

As a small business owner, you have a lot of responsibilities. You want to make sure that you are getting the most out of your income, but once tax season rolls around, every business owner worries that their tax bill is going to be too high or they will be dinged for not paying enough in estimated taxes each year. If you run a small business and need help with any of your tax return, make sure to go to the professionals who can help. The professionals at L. James and Associates specialize in working with sole proprietorships and other small businesses to ensure you are getting the most out of this tax season. Contact us today to get started on your taxes and to get the peace of mind knowing that you are taken care of.

Tax Extenders

The first thing we need to take a look at is the tax extenders. In 2016, there are two tax breaks that have been extended for small business. These are the bonus depreciation and Section 179. In Section 179, you are allowed to deduct the full price of all software and equipment that is leased or purchased in that tax year. There will still be the maximum deduction of $500,000 on this equipment and software so keep that in mind when doing your taxes. The bonus depreciation is going to be extended through 2017 and allows you to depreciate 50 percent of how much you spent on equipment that was purchased during 2015. You can use both of these together on your tax return.

If you feel that you qualify for either of these deductions, you should talk to the professionals at L. James and Associates. Our professionals can take a look at your tax return and determine how much you can deduct with these two tax extenders and will get the most money back to you at the end of the year.

Affordable Care Act

There are some small businesses that are going to be affected with this new healthcare reform when tax season comes around. If you do not provide this health insurance to your employees or you don’t report the type of coverage you are providing for your employees to the IRS, you could face some tax penalties. The penalty could be as high as $2000 for each employee so it is pretty steep. These rules come into effect once you reach higher than 50 employees. If you are below this number, you may not have to provide health insurance to your employees, although you are welcome to if you prefer. If you are unsure about whether you need to report your employee health coverage on your tax return, make sure to talk to the professionals at L. James and Associates to get started.

Online Sales

Right now the rules on online sales are difficult to understand. There is some legislation that is moving to require all those who sell goods online to pay a state sales tax. This would level the field so they are paying the same taxes that the brick and mortar stores are doing. Right now, there are only rules in some states so make sure to check on yours to see if you need to pay sales tax on items you sell online.

Other tips for your  small business taxes:

• Don’t wait until the end of the year—many small businesses ignore taxes all year long, and then find it is a big headache at the end of the year. You should plan on this all year round by keeping good records, working with a tax professional, and even making estimated tax payments to help make this easier.
• Hire a professional—the professionals at L. James and Associates are happy to help you out with any and all of your small business tax needs. This can make it easier to get your taxes done without all the hassle.
• Be aware of everything—just because you are hiring a professional does not mean you need to just walk away and ignore everything about the taxes. Ask questions to keep informed, know the news that is related to the laws with taxes, and be in the loop so you can have better control over your business.
• Never make assumptions—tax planning can be tough, especially since the laws regarding tax breaks and other tax topics are often pushed to the last minute. It is better to set up your taxes as if you will not get the tax break. If you get that break later on, you are ahead but it would be hard to make adjustments if you were counting on that tax break.
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Figuring out your taxes as a small business can be tough. Make sure to get the professionals from L. James and Associates on your side from the beginning so you can take charge and keep your business running smoothly.

Tax season can be stressful and confusing to many taxpayers. Rather than trying to figure it all out on your own, make sure to contact Lou J. Arellano with L. James and Associates in Denver, CO. Our professionals have the experience that you need to get taxes done right the first time so you can rest easy knowing that you are taken care of the right way. Contact us today to get started on your small business tax return.