The recipient of an MBA in business management and a JD from the University of Miami, Suzanne DeWitt is currently a principal of Valora, a consulting firm in Miami. Suzanne DeWitt provides tax-efficient strategies to clients that include family-owned businesses.
For small business owners, filing taxes for the first time can be a daunting task, which is why it’s recommended that they meet with a qualified tax professional who can break everything down and maximize deductions and credits that they might not be aware of otherwise.
For instance, if you donate to nonprofits regularly through your business, you can then deduct those charitable contributions - or even stocks and volunteer expenses. Particularly important for first-time business owners is the Section 179 deduction, through which they can deduct up to $500,000 of eligible business property. The full amount can be deducted in the first year that the business acquired the property.
Another strategy to consider is the health care tax credit, which is especially beneficial to eligible businesses with fewer than 25 full-time employees who make an average annual salary of less than $50,000 and pay half or more of employee health insurance premiums. You can also defer taxable income through cash-method accounting, which allows you to minimize total taxes in a two-year window. One of the methods for doing so is to charge recurring expenses on credit cards and claim deductions in the current year even if the bills won’t be paid until the following year.
For small business owners, filing taxes for the first time can be a daunting task, which is why it’s recommended that they meet with a qualified tax professional who can break everything down and maximize deductions and credits that they might not be aware of otherwise.
For instance, if you donate to nonprofits regularly through your business, you can then deduct those charitable contributions - or even stocks and volunteer expenses. Particularly important for first-time business owners is the Section 179 deduction, through which they can deduct up to $500,000 of eligible business property. The full amount can be deducted in the first year that the business acquired the property.
Another strategy to consider is the health care tax credit, which is especially beneficial to eligible businesses with fewer than 25 full-time employees who make an average annual salary of less than $50,000 and pay half or more of employee health insurance premiums. You can also defer taxable income through cash-method accounting, which allows you to minimize total taxes in a two-year window. One of the methods for doing so is to charge recurring expenses on credit cards and claim deductions in the current year even if the bills won’t be paid until the following year.
