Do your small biz owner clients have U.S. operations? Then they’ve had to deal with higher rates on several taxes, which were approved by Congress on New Year’s Day.
One such change includes increased tax rates on dividends for those with high incomes.
And the cost of preparing returns, fine-tuning payroll systems and complying with regulations will also rise, reports nytimes.com.
The news isn’t all bad, however. There are a few credits and deductions that might help them beat the new rules. This includes an increase in the Section 179 deduction to $500,000. This credit allows expenditures on capital items like factory equipment to be written off immediately instead of depreciated gradually, adds nytimes.com.
Here are some more articles to help U.S. clients beat the taxman.
What the cliff act means for estate taxes
Prepare clients for OAS and tax changes
Fiscal cliff could raise cross-border taxes
U.S. tax rates have fallen since 1980
4 ways to save cross-border tax
IRS issues guidelines for tax compliance