A Few Business Tax Tips for 2017

 

From time to time I’ll note changes in place for 2017 taxers. Some reflect prior-year inflation. Some are new rules. One thing is certain: All taxpayers will be affected.

The 2017 standard mileage rate for business driving falls to 53½¢ a mile, a 0.5¢ drop. The rate decreases to 17¢ a mile for travel for medical purposes and job-related moves. But the rate for charitable driving remains at 14¢ per mile.

$510,000 of assets can be expensed in 2017, and this figure phases out dollar for dollar once over $2,030,000 of assets are put into service during the year.

Two business tax breaks first apply on 2016 returns filed in 2017:

Small start-ups can opt to claim $250,000 of R&D costs to offset payroll taxes instead of their regular income tax liability. The election is available to companies in business for five years or less that have gross receipts under $5 million.

Businesses that hire the long-term unemployed get a tax credit. The work opportunity tax credit is expanded to cover employers that hire people who’ve been out of work for 27 weeks or more and received unemployment benefits. The 40% credit on the first $6,000 in wages applies for those beginning work after 2015.

If you have any questions at all about business taxes, and tips to maximize your efforts, please call me at 813-600-5889 to discuss, or email me at larry@taxproblemsolver.com – or contact me via the contact form on my website!