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Business Tax Changes for the USA 2015

Each new year means another new set of tax rules for businesses across the country. There are some major business tax changes for 2015 and then there are also some smaller ones that are still very important to note and implement.

Even if you have a tax accountant take care of your business taxes, it is important to know the business tax law changes so you can alter the way you collect information throughout the year. The more you know about the pending changes, the more you can help your tax accountant to maximize your deductions and save you money on your taxes.

Affordable Care Act

If your small business is below the 50-employee threshold for the tax implications of the Affordable Care Act, then your concerns in 2015 are no different than they were in 2014. But if you do have 50 employees or more, then the ACA could affect your taxes at the end of the year.

One of the changes that 2015 brings with the ACA is an increase in tax penalty for people who do not have coverage. Along with stiffer fines comes the requirement that employers offer adequate insurance for a reasonable price. A professional tax expert can explain to you exactly what constitutes adequate insurance and reasonable prices.

If you are planning an expansion in 2015 that will force you to hire more employees, then the ACA could become an issue for you in 2016. With the ACA, it is always best to plan at least one year in advance to avoid tax problems.

Changes To Business Tax Deductions

The tax code undergoes changes every year, but there are certain deductions that small business owners around the country have been relying on to help those business to show a profit. In 2015, there is a good chance that the deductions your company has been relying on will either be eliminated or significantly reduced.

A good example is the work opportunity tax credit that gave business owners a deduction of $9,600 for each qualified employee they hired. A qualified employee could be a military veteran, a disabled person, or any other person who qualified under the credit. In 2015, the work opportunity tax credit will be gone and that could change the way businesses hire employees going forward.

In 2014, the limit for being able to write-off purchases such as office equipment and furniture over a three-year period for depreciation was $500,000. In 2015, that limit plummets to $25,000. Business owners will have to find different ways to decrease their costs to offset the loss of these types of deductions.

The Tax Extenders Bill

In 2013, the Congress started negotiations to extend the Tax Extenders Bill which offered up to $85 billion in tax breaks to small business and private individuals. But as of November 2014, Congress could not come to an agreement. If the bill is not passed in time to affect 2015 taxes, then your business could wind up paying a lot more in taxes for 2015 than you had expected.

For 2015, the IRS and Congress have worked together to extend tax breaks for individuals. Some personal tax deductions, such as the maximum Earned Income Tax Credit for individuals was raised to $6,242 in 2015 to adjust for inflation. Unfortunately, Congress and the IRS were not feeling quite as benevolent towards businesses.

Many of the tax breaks and deductions businesses got used to over the past few years are not going to be available in 2015. In order to be certain that your business is prepared for these tax changes in the coming year, you need to review all of the potential issues that could affect your business and make plans to address them throughout the coming year.

Bizwiki has a list of Tax Return and Filing Experts in each US State and City.


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