Several new tax credits and deductions are available for small businesses. This is an ideal opportunity for any small business to reduce its tax liabilities. Some of these available tax relief options are explained here:
Tax relief for small businesses in the health sector
One of the biggest new tax credits is the Small Business Health Care Tax Relief. This tax credit is given to small businesses and charities that employ a large number of low-income workers. The credit allows these eligible organizations to receive tax relief on the premiums they paid for their employees’ health care. This tax credit is valid from 2010 to 2013. The eligible tax credit is up to 35% of premiums paid during a tax year for small businesses and up to 25% for eligible tax-exempt nonprofits. However, for the two qualifying years after 2013, the tax credit will be a maximum of 35% for eligible nonprofits and 50% for eligible small businesses. The credit is designed so that small businesses and nonprofits with fewer than 10 full-time employees and an average salary of $25,000 per year receive the highest tax credit (credit is reduced for large businesses and nonprofits). non-profit). To qualify for this health care tax credit, a small business or non-profit organization must have a maximum of 24 full-time employees and must also have a maximum average annual salary of $49.999.00.
Tax deduction for independent healthcare costs
Another new tax deduction that will take effect in 2011 is the self-employed person’s deduction Zvw. The tax deduction is part of the Small Business Jobs Act of 2010. This exemption allows self-employed workers to reduce their taxable income. for a specific tax year with the premiums paid for their care. The health insurance must be in the name of the self-employed person go to https://www.taxfortress.com/.
Small Business Capital Expenditure Tax Reduction
This tax credit allows small businesses to declare expenses incurred in purchasing certain assets under IRS Schedule 179, Property. Ideally, these costs are amortized over several years. However, with this tax credit, a company can claim costs up to $500,000.00 of the first $2 million in cost of ownership. The tax credit applies for the 2010 and 2011 tax years. In 2012, the maximum allowable amount a company can deduct for capital expenditures is reduced to $125,000.
Tax deduction for the depreciation premium
In addition to the 179 asset exemption, a small business can also deduct an additional 100% depreciation from the cost of qualifying assets if those assets were purchased after September 8, 2010, and put into use before January 1, 2011.
Limit car costs
There is a limit to the total amount of deductible items that you can place in both the OZB 179 and the Depreciation Bonus for company cars. For passenger cars, the total amount of deductions you can make in the first year of purchase is $11,060.00 and if you have not deducted the depreciation bonus, it will be reduced to $3,060.00. For trucks and vans, the maximum amount you can deduct after taking the cost of the equity premium is $11,160.00 and if you haven’t included the cost of the equity premium you can get up to $3,160 .00 in the first year of purchase.