As an accounting business who serves other small businesses, we think updating our clients on changes to the tax code is a part of our business. So if you’ve just dropped in, why don’t you take a moment to see what condition the US tax condition is in. Relevant? Relevant.
We mentioned in a recent post that small businesses can expect a reduction in the number of lines necessary to make the home office deduction. Well, there were 5 changes. Here are the top 3 according to us:
1.) The online sales tax. This has been in the news lately, and if you’re an online retailer in some capacity, you’re probably aware of it. While in the past many companies got away with not charging their customers an online sales tax “by creating separate legal subsidiaries to handle Internet business,” it appears that practice is no longer a viable strategy. Read here for more information.
2.) Income tax. “The tax rate for the top federal wage went from 35 percent to 39.6 percent.” This will affect you directly if you make more than $400,000 in taxable income as an individual or if you married with a joint income of $450,000, but any changes to the tax code are usually felt in a ripple.
3.) The tax on long-term capital gains will rise from 15% to 20%. So if you have investments prepare to pay a little more.
Give us a call at 425-483-6600 to handle your tax returns for you!