One of most challenging aspects of San Diego corporate tax planning is keeping track of all the nuances and constant changes in the tax codes. With every New Year comes new tax laws, and in recent times there has been much debate on how to adjust our tax laws and what effect these changes might have on companies, families and individuals. The news isn’t all bad, though, and with expert tax and accounting services, there’s no reason you have to go into a tailspin keeping track of the current tax codes. There is even some relief for businesses in 2013. Here are a few of the tax law changes you and your business may be happy to hear about.
Tax Provisions That Benefit Small Businesses in 2013
Although there was some debate about extending production tax and Research Credits in 2013, these two credits have both been extended in very beneficial ways. The Internal Revenue Service explains qualifying research as research where expenses can be treated as section 174 expenses. Basically, any company that is conducting research that can potentially produce new information related to technology can qualify for tax credits, as long as they intend to use the newly discovered information in order to improve some aspect of their business. The research must also be intended to improve reliability, functionality, performance and/or quality of products and/or services. This is something that could potentially benefit many taxpayers and consumers, if used effectively.
Another tax credit that has been extended for businesses in 2013 is the Work Opportunity Credit. If your business wants to take advantage of this tax credit, you will need to hire certain types of employees that come from specific groups. These include:
•Designated community residents
•Long-term family assistance recipients
•Temporary Assistance for Needy Families recipients
•Summer youth employees
•Those affected by Hurricane Katrina
•Vocational rehabilitation referrals
In order to qualify, employers must get certification from the State Employment Security Agency before the employee begins work. It’s also possible to complete the Pre-Screening Notice and Certification Request for Work Opportunity Credits at the time the job is offered to the employee.
There are many other tax credits that businesses can continue taking advantage of in 2013, including credits for equipment, furniture, vehicles and fixtures. A tax and accounting expert from Allen Barron can help, so you can take advantage of any credits available.
Please call us at (866) 493-5400 for assistance with your tax law questions or to speak with one of our tax professionals.