Small Businesses, Bite a Chunk Out of Your Taxes!
Small Businesses, Bite a Chunk Out of Your Taxes!
Here are some deductions which may help you take a bite out of your taxes this year.
Targeted-group workers. The current Work Opportunity Tax Credit (WOTC) could provide small businesses up to 40% of up to $6000 of a qualified worker’s first year wages. Qualification for new hires must be examined since the eligibility for WOTC has been expanded to include more worker groups such as the hiring of disabled veterans. The WOTC has been extended through August 31, 2011.Aim at business debtors. Businesses are urged to increase their efforts to collect past-due amounts from customers to derive some tax benefits. A debt that has become totally worthless in 2007 could be claimed as a deduction this year. It should be noted that a business cannot deduct any part of a bad debt after the year it has become totally worthless. Detailed documentation of collection efforts such as letters, phone calls, emails, and authorizations to debt collection agencies should be maintained to support claims of debt worthlessness.Manufactured goods. Sec. 199 of the tax code allows a domestic producer to claim “manufacturing deductions.” To qualify for the manufacturing deduction, the law qualifies that activities must be performed in “significant part” in the United States. To satisfy this rule, a business’ labor and overhead costs for manufacturing, production growth and extraction must be more than 20% of the total cost for the property. The maximum deduction for 2007 is 6% of the lesser of taxable income from qualified production activities or taxable income.Business trips. Don’t forget to write off business-related travel expenses in 2007 such as air fares, lodging, and 50% of the cost of meals. Individuals travelling by car can write off the actual auto expenses, including depreciation (IRS “luxury car” rules apply) or use the standard 48.5 cents per business mile.Repairs. Minor repairs made before January 1, 2008 could be tax deductible. Repairs involve keeping a property in a normal operating condition without adding appreciably to the property’s value or prolonging its useful life. Individuals must be aware to clearly define repairs from improvements (renovations), which tend to increase the property’s value and prolong its useful life. Caution should be taken about making repairs and renovation at the same time; instead, those should be spaced at least a month apart.
SUV. For heavy vehicles weighing more than 6,000 pounds, a business owner may be able to write off up to $25,000 of the cost especially if that individual needs extra room for hauling supplies or equipment. It is exempted from the IRS’ “luxury car” rule which limits the first year deduction only to $3,060 for passenger cars placed in service in 2007.
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Alan L. Olsen, CPA, Wikipedia Bio
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Armin Tahmasbi | Encapsulate
I’m a young entrepreneur and a Ph.D. candidate in Biomedical Engineering program at the University of Connecticut, working on “Drug Delivery Systems, Self-Assembled Nanoparticles & Microfluidic Devices”, in Storrs, CT, US. I’m working in Self-Assembled Functional Nanomaterials Laboratory, under the supervision of Prof. Mu-Ping Nieh on “Drug Delivery Systems for cancer therapy”. We’re developing a universal platform for encapsulating and smart delivery of a wide range of drug molecules and
Spencer Jones | Lineus Medical
Spencer worked for 3 years in direct patient care as a Certified Nursing Assistant, Licensed Practical Nurse, and as a Registered Nurse. Frustrated with the inefficiencies plaguing the healthcare system, he was determined to play a role in improving the delivery of healthcare. In 2014, Spencer won the annual ARK Challenge, an Arkansas based business accelerator. The product he developed was a dual lumen peripheral IV called the BVAD, which focuses on painless and uncontaminated blood draws.
Adeel Malik | CEO of Clearstep
While studying finance and neurobiology in undergrad, Adeel spent his time doing neuro-immunology research at the Johns Hopkins Hospital, contributing to several academic publications. After undergrad, Adeel was a strategy & analytics consultant with Accenture for several years where he worked with some of the largest institutions in healthcare across pharma, health tech, health systems, and retail clinics. Adeel’s skills in healthcare analytics, operations, sales, and his breadth of experience
Yael Katz | How BrainCheck is Democratizing Cognitive Health
Dr. Yael Katz is the co founder and CEO of Braincheck, a healthcare technology company focused on making cognitive health assessments more accessible. Prior to co founding Braincheck, Yael was VP of ecommerce at JW Player and a post doctoral research fellows at Princeton University. She received a Ph.D in in Biological Sciences focusing on Computational and Experimental Neuroscience from Northwestern University.Alan What brought you to co founding Braincheck? Yael If a person has a concern that