Yes, it’s almost tax season again. As a small business owner, you’re keenly aware of the looming tax deadlines that will impact how you go about your business.
It’s that time of year for small business owners to get their financial ducks in a row and prepare for tax season. There are many new pending tax changes afoot, some of which will be particularly important and need to be on your radar when you meet with your tax professional.
Here are five tax changes for 2015 small business owners should be aware of:
The Affordable Care Act. Changes here should be at the forefront of your tax agenda and planning. This is especially true if your small business is near, or just passed, the 50-employee threshold. Business with more than 50 employees must offer health-care insurance to full-time workers, a mandate which is expected to be enforced in 2015.
Retirement account contributions. Many of the rules regarding contributions to retirement accounts are changing for 2015, allowing employees to put away much more than previous years. For SEP-IRA and solo 401(K) accounts, both commonly used by small business, the maximum contribution has increased to $53,000. Employees may contribute up to $18,000 for 401(K) accounts.
Tax extenders may expire. Within the American Taxpayer Relief Act of 2012 that expired at the end of 2013, there were 55 extended tax benefits. Of those expired benefits, 14 impacted small businesses. Be prepared if your business has relied on any of the benefits that have not been renewed.
Increase in corporate tax rates. This is one of the key issues for small businesses in the upcoming tax season. Companies structured as corporations currently pay a higher rate, and if corporate tax rates are lowered, how small businesses are structured could impact their tax advantages.
Expiration of tax credits. Small businesses may find that many of the tax credits they previously relied on have expired or been greatly reduced. Bonus depreciation ended in 2013. The work opportunity tax credit and the energy tax incentive are also both gone. Section 179, allowing business owners to deduct the entire cost of certain assets, has been greatly reduced.
It’s that time of year for small business owners to get their financial ducks in a row and prepare for tax season. There are many new pending tax changes afoot, some of which will be particularly important and need to be on your radar when you meet with your tax professional.
Here are five tax changes for 2015 small business owners should be aware of:
The Affordable Care Act. Changes here should be at the forefront of your tax agenda and planning. This is especially true if your small business is near, or just passed, the 50-employee threshold. Business with more than 50 employees must offer health-care insurance to full-time workers, a mandate which is expected to be enforced in 2015.
Retirement account contributions. Many of the rules regarding contributions to retirement accounts are changing for 2015, allowing employees to put away much more than previous years. For SEP-IRA and solo 401(K) accounts, both commonly used by small business, the maximum contribution has increased to $53,000. Employees may contribute up to $18,000 for 401(K) accounts.
Tax extenders may expire. Within the American Taxpayer Relief Act of 2012 that expired at the end of 2013, there were 55 extended tax benefits. Of those expired benefits, 14 impacted small businesses. Be prepared if your business has relied on any of the benefits that have not been renewed.
Increase in corporate tax rates. This is one of the key issues for small businesses in the upcoming tax season. Companies structured as corporations currently pay a higher rate, and if corporate tax rates are lowered, how small businesses are structured could impact their tax advantages.
Expiration of tax credits. Small businesses may find that many of the tax credits they previously relied on have expired or been greatly reduced. Bonus depreciation ended in 2013. The work opportunity tax credit and the energy tax incentive are also both gone. Section 179, allowing business owners to deduct the entire cost of certain assets, has been greatly reduced.
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