Don't make Any tax filing decisions without full knowledge of how the IRS's new laws apply to you!

Big News for Small Business Owners. Tax changes that occurred during 2010 can significantly lower the tax burden of small business owners who are savvy enough to take advantage of them.
By: Ali Schneider, SFS Tax, Accounting
 
Jan. 22, 2011 - PRLog -- Sharing this information with the small business owner is important, but they need to be certain they know what to do with all this new information and the rest of the new tax laws that have been put in place.  

Washington, DC (January 12, 2011)—For starters, those who pay for their own health insurance can now subtract those payments from their reported net earnings, thanks to the Small Business Jobs Act of 2010. Records show that 3.8 million taxpayers claimed the self-employed health insurance deduction in 2008. The net earnings reduction offered by the 2010 legislation should result in significant tax savings for this segment of taxpayers.

The good news continues with the new Small Business Health Care Tax Credit, which can be taken by small businesses owners who pay at least half of their employees’ health insurance premiums. Business owners can claim a maximum credit of 35 percent of the premiums for 2010 through 2013 and for any two years after that. Tax-exempt organizations can receive a credit of 25 percent of premiums paid.

Another beneficial change is the higher expensing/depreciation limits on property for 2010 and 2011. Businesses that buy and place into service property such as buildings, machinery, vehicles, furniture and equipment after Sept. 8, 2010 can now claim a depreciation allowance of 100 percent of the cost of the property even if the business operates at a loss (as opposed to with a 179 deduction when you have to be profitable. More good news for small businesses: they can also depreciate some intangible property, such as patents, copyrights and computer software.

One change that not everyone sees as an advantage is that paper coupons are no longer accepted for federal tax deposits. The Electronic Federal Tax Payment System (EFTPS) is now the required system for paying federal taxes and making deposits. While some taxpayers balk at learning a new method of payment, it’s hard to find a lot of fault with a new system that accepts payments 24/7 from home or work and allows deposits to be made online or by telephone. This kind of flexibility should help to do away with many penalties incurred for errors or lateness.

Taking advantage of every possible tax savings is essential to the success of a small business. With the numerous recent tax changes, NAEA highly recommends consulting an Enrolled Agent (EA) before filing a business or individual return. EA's are licensed by the Department of the Treasury and every EA has passed competency testing on individual and business taxes and on representation of taxpayers before the IRS. EA's must adhere to a Code of Ethics and fulfill continuing education requirements to keep up-to-date on the constantly changing tax code.

SFS Tax, Accounting & College Planning Services has offices in Royal Palm Beach and  Port St. Lucie, FL that serves  Palm Beach County, St. Lucie and Martin counties as well as clients throughout the county.

About the National Association of Enrolled Agents (NAEA)
NAEA is the professional society that supports its nearly 12,000 members with resources, education and networking and by representing their interests to government, business and the general public.

# # #

About SFS: The firm is headed by Jeffrey A. Schneider, EA (Enrolled Agent), CCPS (Certified College Planning Specialist, and has been working in the field for over 30 years, with clients throughout the country. On August 11, 2010, Jeffrey A. Schneider successfully completed the National Tax Practice Institute (NTPI) program and was recognized as a Fellow of NTPI.  Jeffrey has been published in Tax Pro Quarterly (The National Association of Tax Professionals), The Collaborator (FL Bar Magazine) and the Treasure Coast Business Journal, as well as interviewed and quoted by the NAEA, NATP and by various other independent writers. He serves as President of the Palm Beach Chapter of the Florida Society of Enrolled Agents and a Member of the Board of Directors of the Florida Society of Enrolled Agents.
We work closely with business owners to make certain they meet all their necessary tax requirements and are entitled to every available break legally allowed by the IRS.
End
Email:***@sfstaxacct.com Email Verified
Zip:33411
Tags:Business Taxes, Individual Tax Preparation, Multi State Returns, Trusts, Payroll, Small Businesses, Tax Returns
Industry:Tax preparation
Location:Royal Palm Beach - Florida - United States
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
SFS Tax Problem Solutions PRs
Trending News
Most Viewed
Top Daily News



Like PRLog?
9K2K1K
Click to Share