What's the Big Deal About the Volcker Rule and the Enterprise Tax Plan?
There are quite a few small business tax ideas that would be helpful to any small business owner. The following small business tax advantages are discussed here:
- Expense Waiver: This provision can be used by sole proprietorships, partnership or corporations. It allows the small business owner to deduct expenses that are related to preparing the return or answering any of the questions on it. The allowable expenses include: travel, mailing expenses, postage, filing fees, phone bills, legal expenses and the amount of taxes. The legal structures for this vary from one state to another.
- Credit Within Tax Liability: A company may claim a credit against their income tax liability for legal expenses or interest paid on loans. This could also be claimed for property taxes, payroll taxes and other administrative expenses incurred during the year. Most small businesses have limited liability. In such cases, the tax bill will be lower than if the tax liability were big.
- Excise Tax: The federal government imposes an Excise Tax on most sales and consumption activities of businesses. The rate of this tax is fifteen percent. A special tax treaty with the United States government enables businesses to levy an Excise Tax on imports as well as exports. The tax on many products is twenty-five percent. The Excise Tax is levied twice as often as the sales tax.
- Deductions: Some small business taxes are imposed by the employer rather than by the individual. These include deductions for health care and retirement expenses. Health insurance premiums and large health expenses, as well as some charitable contributions, are deductible from income tax. Self-employed people can also deduct a percentage of their income as health-care expenses. These deductions vary greatly from one region to another. Learn more about taxfyle.
In addition, there are several other self-employed tax credits which you might be eligible to receive. For example, you can claim a tax credit for real estate property and casualty losses if you used the property in the course of your business. You can also claim a tax credit if you employed certain employees, provided that they were engaged in the business on a regular basis. There are also several other items which are considered to be miscellaneous business expenses, and you may be able to claim them as a small business owner.
The IRS will require you to report all your corporate tax payments if you're audited. This usually happens at the end of a two-year installment. If you meet the requirements then the IRS may waive certain penalties. However, if you don't comply with the requirements, you may be subjected to a penalty for not providing the necessary information. You'll still owe all your tax instalments, but the penalties associated with not reporting will be waived.
The last piece of information I'll give you about the new corporate tax rate is that it's not actually a big surprise. This bill passed the House and is now waiting for a Senate vote. If you want to learn more about this subject, then click here to access all our articles on small business tax law. Read more about freelance cpa.
See more here: https://youtu.be/7NL77GC2vLw.