Tax Breaks For The Middle Class
Lawmakers have enacted many tax incentives that will benefit middle class families and small businesses. It will be important to consult with your CPA and or tax advisor. These are but a few of the highlights.
- Savings Tax credits or IRA deductions continue to be an important tax advantage. Also, there is the obvious benefit of providing for your eventual retirement. Depending on how your business is structured you may have little or no social security benefits at retirement. So some type of retirement plan is paramount.
- The child credit of $1000 obviously benefits business owners with children. This credit reduces your tax bill dollar for dollar.
- Speaking of children, you may also qualify for a tax credit that will reduce the cost of child care. Eligible expenses may include the cost of preschool, before or after school care and summer day camps.
- Charitable contributions are easy to keep track of if you write a check. However, do not overlook driving your car for charity events, plus parking and tolls. Postage you pay or supplies you provide for a charitable or fund raising event may also be deducted.
- Many small business owners are members of National Guard or Reserve Units. For 2017 travel, the rate is 53.5 cents a mile plus what you may have paid for parking or toll fees. You may claim this deduction even if you use the standard deduction rather than itemizing.
- Deductions for Medicare Premiums for the Self-Employed are available to those that continue to run their own business after qualifying for Medicare. They can deduct the premiums they pay for Medicare Part B and Medicare Part D, plus the cost of supplemental Medicare (Medigap) policies or the the Medicare Advantage plan.
- Airline baggage fees are deductible if you are self-employed and travel for business. Keep track of those and other expenses when you attend seminars, schools (such as The Bane-Clene® Institute) or other business related events.
- Bonus depreciation and beefed up expensing may allow you to write off the full cost of qualifying carpet cleaning equipment, trucks and other assets. For 2017, businesses can expense up to $500,000.00 worth of qualifying assets.
- Those that are self employed and pay the full 15.3% Social Security and Medicare Tax can write off half of what you pay. This deduction is on the first page of Form 1040; so, it is not necessary to itemize to take advantage of it.
- If you use part of your home exclusively for your business, there are office credits for the self employed. There are some stipulations; so, check with your tax consultant to see if you qualify. If you do, then part of your utility bills, (rent or mortgage, insurance costs, etc. may be deductible.
- Health insurance premiums for you and your family if you are self employed. This deduction is disallowed if your spouse is eligible for Health insurance at their job
This information is for enlightenment purposes only and is not intended to be a substitute for professional advice from a CPA or other tax adviser. Please consult with them for clarification and whether you qualify.
Related Information and Articles:
- Before You Finance Carpet Cleaning Equipment
- Cash Flow in the Carpet Cleaning Business
- Leasing Used & New Carpet Cleaning Equipment
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Please visit our web site at www.baneclene.com.
The Bane-Clene® Team.
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