2015 TAX HIGHLIGHTS FOR SMALL BUSINESSES
Licensed Tax Consultant/Enrolled Agent
Automobile expenses: Use the mileage rate for actual expenses.
- Mileage rate: 57.5 cents/miles
- Actual expenses are allocated to business and personal use, if any.
- KEEP A DAILY MILEAGE LOG! You are able to pick up a free one at AccounTax!
Health Insurance for owners of S-Corp, Partnership, or Sch. C Self Employed:
Reduces income directly, it is considered a guaranteed payment for Partners
- IF the policy is in the company’s name
- OR the company pays the premium
- OR the company reimburses you for the premium in the same tax year
- Rules are changing quickly. Please call if you have questions.
Cell Phones: Detailed documentation of business/personal use is no longer required.
- Reasonable allocation is best.
- If it is your only phone, it is NOT deductible, but the business bells and whistles
Form 1099 Information Return: What is it? Do you need to issue?
- 1099-K Is issued by merchant card & 3rdparty payment processors if:
- You accept credit/debit card payments OR
- You receive >$20K or > 200 payments from a 3rd party processor, e.g. Paypal
You need to issue if you made payments over $600 for:
- Non-employee compensation, subcontractors, auto reimbursement to non-employers, awards, commissions, rental income.
- Schedules C and E now require YOU to make a statement as to whether or not you need to file any Form 1099.
Due dates: Jan 31 to recipient, Feb 28 to IRS, later if E-filed.
For C corps and S corps:
- Have your annual meeting and record the minutes.
- 2% share holders: report to payroll company the special rules pertaining to you.
- Due Dates March 15th.
IF this sets off alarms, call ACCOUNTAX ASAP! 503-619-1040
NOTE: This is a small sample of tax topics affecting small businesses. It is by no means a complete listing of tax changes.