small business - Linkenheimer LLP CPAs & Advisors

Small Businesses: There Still May Be Time To Cut Your 2021 Taxes

Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies.

Purchase assets

Thinking about buying new or used equipment, machinery or office equipment in the new year? Buy them and place them in service by December 31, and you can deduct 100% of the cost as bonus depreciation. Contact us for details on the 100% bonus depreciation break and exactly what types of assets qualify.

Bonus depreciation is also available for certain building improvements. Before the 2017 Tax Cuts and Jobs Act (TCJA), bonus depreciation was available for two types of real property: land improvements other than buildings (for example fencing and parking lots), and “qualified improvement property,” a broad category of internal improvements made to nonresidential buildings after the buildings are placed in service. The TCJA inadvertently eliminated bonus depreciation for qualified improvement property. However, the 2020 CARES Act made a retroactive technical correction to the […]

By Linkenheimer LLP|2021-12-07T19:10:08+00:00December 7th, 2021|business, deductions, small business, tax deductions, vehicles|0 Comments

EIDL Program Retooled for Still-Struggling Small Businesses

For many small businesses, the grand reopening is still on hold. The rapid spread of the Delta variant of COVID-19 has mired a variety of companies in diminished revenue and serious staffing shortages. In response, the Small Business Administration (SBA) has retooled its Economic Injury Disaster Loan (EIDL) program to offer targeted relief to eligible employers.

A brief history

The EIDL program was in place well before 2020. However, the federal government has ramped up the initiative’s visibility while trying to help small businesses during the pandemic.

With the entire country essentially declared a disaster area, the CARES Act established an enhanced EIDL program for small businesses affected by COVID-19. It offered lower interest rates, longer repayment terms and a streamlined application process.

The American Rescue Plan Act upped the ante, offering eligible companies targeted EIDL advances that are excluded from the gross income of the person who receives the funds. The law stipulates that no […]

By Linkenheimer LLP|2021-09-24T18:04:20+00:00September 24th, 2021|business, eidl, sba, small business|0 Comments

Tax Breaks to Consider During National Small Business Week

The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider.

1. Claim bonus depreciation or a Section 179 deduction for asset additions

Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired and placed in service in calendar year 2021. That means your business might be able to write off the entire cost of some or all asset additions on this year’s return. Consider making acquisitions between now and December 31.

Note: It doesn’t always make sense to claim a 100% bonus depreciation deduction in the first year that qualifying property is placed in service. For example, if you think that tax rates will increase in the future — either due to tax law changes or a change in your income — it might be better to forgo bonus depreciation and instead depreciate your 2021 asset acquisitions over […]

By Linkenheimer LLP|2021-09-16T22:04:22+00:00September 16th, 2021|deduction, deductions, depreciation, small business, tax planning|0 Comments

Large Cash Transactions with Your Business Must Be Reported to the IRS

If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS.

What are the requirements?

Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or two or more related transactions), must file Form 8300. What is considered a “related transaction?” Any transactions conducted in a 24-hour period. Transactions can also be considered related even if they occur over a period of more than 24 hours if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions.

To complete a Form 8300, you’ll need personal information about the person making the cash payment, including a Social Security or taxpayer identification number.

Why does the government require reporting?

Although many cash transactions are legitimate, the IRS explains that “information […]

By Linkenheimer LLP|2021-08-16T18:18:26+00:00August 16th, 2021|business, cash, small business|0 Comments

California Tax Updates for 3/24

Update 1:

Two more California cities, Pomona and Santa Ana, have adopted Hero Pay Ordinances to give extra pay to certain workers during the COVID-19 pandemic. Pomona’s ordinance is effective from 3/1/21 through 6/29/21, requiring qualifying retail businesses to pay an additional $4.00 per hour to their workers. Here are the details for Pomona, including which businesses are affected: https://bit.ly/3cCcAkt. Santa Ana’s ordinance also requires $4 per hour of additional pay (from 3/3/21 through 6/30/21). Here are the details for Santa Ana, including which businesses are affected. https://bit.ly/3cEREsX. Or, contact your Linkenheimer CPA with questions.

Update 2:

In his 2021 State of the State address, California Governor Gavin Newsom didn’t propose new or higher taxes. The address was delivered virtually from Dodger Stadium in Los Angeles earlier this month. Newsom devoted most of his address to the COVID-19 pandemic, highlighting the state’s progress in battling […]

By Linkenheimer LLP|2021-03-24T18:46:37+00:00March 24th, 2021|ca, CA tax, california, covid-19, small business|0 Comments