Tax Breaks For Small Businesses
There have been a handful of changes made to the recent tax codes that could provide you with a fatter refund check than ever before. The Small Business Jobs Act, passed last September, passed credits and deductions for capital investments and employee health insurance costs. Now, six new credits and deductions will most likely affect these small business owners. When it comes to the health care tax credit, small businesses that pay at least half of their employees' health coverage will be able to get a significant tax return.
From 2010 to 2013, the tax credit covers up to 35% of the money that a business spends on its health insurance premiums. In 2014, the top tax credit bumps up to 50%. However, what if you are self-employed? Usually, you can deduct your insurance costs from the profits you make, but you cannot deduct those same costs from your self-employment taxes. Although, in 2010, people who were self-employed could deduct their health insurance costs from their company profits, for both taxes.
The Bonus Depreciation Extension covers new equipment only and for 2010, there was an accelerated depreciation schedule. The point is to get cash into the hands of small businesses quickly. You can depreciate property like buildings, machinery, vehicles, furniture, and equipment, as well as patents, copyrights and computer software.
For more information, research the rest of the tax breaks and see how you can significantly reduce the amount of money you are spending and not getting back for your small business.