-- In a recent interview, leading CPA Pauline Ho, head accountant at Laus Consulting Services LLC in Orlando, FL, laid out a tax planning game plan so that small business owners can reduce IRS payments.
For more information please visit https://lausconsult.com/
When asked to comment, she said, "One of the most valuable things that a seasoned accountant can offer a small business owner is a great strategy to curb their business tax bill. Here are a couple of ways to do it as we head into the tax season."
Thanks to the newly passed Tax Cuts and Job Act at the beginning of the year, small business owners can apply for a bonus depreciation for property used for business.
When asked to elaborate, Ho said, “Huge tax savings are in store for anyone who correctly claims 100% first-year bonus depreciation, which is given for property that has been acquired in the 2019 calendar year. In other words, your business could write off the cost of its assets additions made this year.”
The 100% bonus depreciation is also valid for new and used heavy vehicles that are categorized as transportation equipment.
According to her, if a small business owner is looking to acquire new property for operational purposes that the best time to do it might be before the year ends.
“The savings for vehicles that have been purchased and placed into service in 2019 and that are used half the time for business purposes are much higher under the new tax code. For the first year, the luxury auto depreciation limit is $18,100 and $16,100 for the second year,” she said.
Another way to shore up tax savings is by setting up a tax-favored retirement plan.
“Because our present tax code allows taxpayers to major deductible contributions, it might be high time to set up that retirement plan. For instance, if you’re categorized as self-employed and establish a SEP-IRA, you can put in up to a quarter of your earnings up to $56,000 for this tax year. If you’re employed via your own corporation, then you can give up to 25% of your income up to $56,000,” she said.
According to Ho, there are other retirement plan options out there that might allow for more substantial deductible contributions.
“The new tax code offers small business owners huge tax savings so they can pay a smaller IRS tax bill. Contact an experienced CPA to figure out the ins-and-outs of the tax landscape and how you can begin taking advantage of it today,” she said.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814, USA
Phone: 407-401-9768
Website: https://lausconsult.com/
Source URL: http://RecommendedExperts.biz
Release ID: 88939547
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