It’s time to meet with your San Antonio CPA to prepare your small business tax return for 2020. You might be surprised to find some new twists to the tax law. Check out our tips to find out what’s new and how you may be able to benefit from changes to the tax law this year. Discuss them with your CPA to see which ones are appropriate for you and your business.
- Some businesses can take larger-than-usual deductions for equipment purchases made in 2020. Your business may be able to take a 100% bonus deduction for some kinds of equipment purchased and used after September 27, 2017.
- If your business took out a PPP (Paycheck Protection Program) loan and had it forgiven, be sure to ask your CPA about the tax implications. Some expenses that are normally tax-deductible, such as payroll expenses, are not deductible if they were paid with PPP funds.
- Consider switching from a pass-through basis to C-corporation in 2021. The income tax rate for a C-corp is a flat 21%. Also for 2020, the CARES Act may allow you to deduct 20% of your qualified business income.
- Fund your retirement plan. If you haven’t started one yet, now is the time to do so. Be sure to contribute as much as you can to an existing account. In addition to the obvious benefit of helping you prepare for the future, the investments you make into your IRA or other plan may be tax-deductible. Most taxpayers can still contribute to a retirement plan for 2020 until the due date for their return.
- Plan ahead for quarterly income tax payments. Set money aside as you earn it throughout the year. This way you can avoid the problem of having to make large payments at times when you may not have ready funds available to do so.
Gonzales Group CPA in San Antonio TX can help your small or medium-sized business make the most of changes in the tax law. Call 210-366-9430 today to schedule a free consultation with our full-service San Antonio CPA firm.Tags: cpa firm in san antonio tx, CPA in San Antonio Tx
Categorised in: 5 Tax Tips for Your Small Business in 2021
This post was written by Gonzales Group CPA