With the economy continuing to grow, and that you may be considering expansion, you may want to know what is the most tax-advantaged way to execute this?
It depends on your business.
If you offer personal experiences, hiring quality people is the way to go. The right person for your business will be a productive one and increase your profits. There are many excellent human resource professionals who have started their own practices after corporate down-sizings.
Such advice can be invaluable to hiring the right person. Additionally, there are now many online or cloud based human resource platforms that can help you comply with employment laws and give employees robust self-service.
I would highly recommend engaging a human resources professional before choosing such software. Depending on the size of your business, all these costs can be deductible. So if you are in a 30% tax bracket, Uncle Sam will pick up that much of the cost.
Illinois and other states offer credits on payroll taxes for new hires.
If you are a capital-intensive business, employing machinery, technology, and transportation vehicles, Internal Revenue Code Section 179, which has been benefiting taxpayers for years, is alive and well.
This code section lets smaller businesses deduct capital outlays in the year that they are acquired instead of over several years via depreciation. Last year, a qualifying business could purchase up to $200,000 of capital and deduct all of it! Land and buildings don’t usually qualify, although done a certain way, parts of buildings can be depreciated more quickly.
Lastly, if you have software modified to improve the operations of your business, you may be eligible for a research and development tax credit.
With the improving economy and historically low inflation, now could be a great time to invest in your people and/or property.