Year End Small Business Tax Tips

As  Los Angeles Certified Public Accountants, we have the opportunity to work in different industries.  Each industry has its own special personality, yet there are some tax breaks that many are not taking:

1. Healthcare credit: This credit is not only new to Certified Public Accountants, but to small business owners.  If your company pays health insurance for your employees, you may be able to claim this credit.  Don’t be discouraged because you, as the owner, pay for your own health insurance.  That payment is not included in the computation.
2. Section 199 domestic production manufacturing deduction: Companies seem to ignore this gem of a deduction if their core process is not manufacturing.   However, that is not the proper way to look at things.  If there is ANY part of your business that you “manufacture,” then we  certified public accountants are interested.   Music production, magazine publishing, and metal duct fabrication are some areas that one would not think are manufacturing, but they are.
3. Tax withholdings: Recompute your tax withholdings for 2012.  If you are overwithholding, then the IRS is using your tax dollars interest free.  Any certified public accountant or bookkeeper can help you.
4. Moving Expenses: Times are tough and many are moving to engage new employment.  Check with your certified public accountant as to whether you qualify for this deduction.  Job seeking expenses also could be deducted if they qualify.
5. Energy Tax Credits: There still may be a chance that you can take energy credits for things like exterior doors, windows, etc.  Also, you may be able to better if you acquire alternative energy equipment.  Make sure you speak with your certified public accountant before making these decisions.
6. Section 179 Accelerated Depreciation: Many businesses know about this, but make sure there are good business decisions for making your purchase. Don’t have tax considerations guide your business decisions.
7. Retirement Plan: If you don’t have one, get one.  With the decrease in the stock market, so many people are ill prepared for retirement.  The current tax savings can take a giant chunk out of your tax bill.

As certified public accountants, we try to be proactive in advising our clients.  However, you, the business or individual must not procrastinate.  Listen to the certified public accountant tax specialists and retain some money in your pockets on tax day.  Discuss your situation with your tax advisor before acting.

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IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.