There are several new credits and tax deductions available for small businesses. These are an ideal opportunity for any small company to reduce their tax obligations. Some of these convenient tax relief options are explained here:
Relief of health taxes for small businesses
One of the new and most important tax credits is the tax relief for health care for small businesses. This tax credit is given to small businesses and small charities that employ a reasonable number of low-income employees. The credit allows these qualified organizations to receive a tax cut for the premiums they have paid for the medical care of their employees. This tax credit extends from 2015 to 2018. The amount of the qualifying tax credit is a maximum of 35% of the premiums paid in a fiscal year for small businesses and a maximum of 25% for non-profit organizations exempt from qualified taxes.
Tax deduction for the cost of medical care for self-employed persons
The tax deduction for independent people who pay for their medical care is another new tax reduction. The tax reduction is part of the Small Business Employment Act of 2010. The self-employed person can reduce the income subject to taxes for a given fiscal year with the premiums paid for their medical care. Health care coverage must be registered under the trade name of the self-employed workers.
Reduction of taxes on capital expenditures for small businesses
This tax relief allows small businesses to claim the costs of expenses incurred in the purchase of certain commercial assets under Exhibit 179-Property of the IRS. Ideally, such payments should depreciate for several years. However, with this tax relief, a company can claim expenses of up to $ 500,000.00 of the first $ 2 million of the cost of ownership. As of 201, the maximum allowed that a company could deduct for capital expenditures will fall to $ 125,000.00.
Limitation on the expense of the car
For commercial automobiles, there is a limit on the total amount of deductions that can be placed both in the property tax relief 179 and in the relief of the additional depreciation. For passenger cars, the total number of deductions you can make in the first year of purchase is $ 11,060.00 and, if you did not deduct the relief from the depreciation of bonds, it is reduced to $ 3,060.00. For trucks and vans, the maximum amount you can deduct after making the deduction for additional depreciation is $ 11,160.00 and, if you did not take the deduction, you could deduct a maximum of $ 3,160.00 in the first year of purchase.