Tax Tips

Below are some of the key tax filing changes that could impact your business. Be sure to consult with your tax professional as to how they may impact your business.

• If you’re a small business owner in the highest tax bracket, the tax rate for long-term capital gains dropped from 20% to 15%.
• The tax rate for the top federal wage increased to 39.6% from 35%.
• Business owners can claim a home office deduction valued at $5 for every square foot (up to 300 square feet). To file for this deduction, you will only have to fill out one line (rather than a 43-line form).
• There is new Medicare tax on investment, adding an increase of 3.8%.

During tax season, make sure to do some “spring cleaning” as well. Go through your contact and employee databases and clean up old records. It’s also the perfect time to structure your file keeping and organization processes!

If you need additional time to file your taxes, it’s easy to request an income tax extension. Don’t risk missing deductions or making mistakes.