Liberty Tax Service Urges Mid-Year Recordkeeping Check-up for Small Businesses

 

Press Information
For Immediate Release
June 28, 2011 
   

 

 
CONTACT: Martha O’Gorman
Liberty Tax Chief Marketing Officer
(800) 790-3863 ext. 8022
martha@libtax.com
 

 

Liberty Tax Service Urges Mid-Year Recordkeeping Check-up for Small Businesses
Business Mile Deduction Will Increase July 1
 
 

 (Virginia Beach, VA)  Careful tax planning year-round can pay off at tax time for small business owners. Liberty Tax Service urges a periodic tax check-up on record keeping for expenses such as business miles, and a review of recent changes that may be advantageous for the rest of this year.  The deductible rate for business mileage increases to 55.5 cents per mile on July 1.  It’s a good time to place section 179 property in service.  For 2010 and 2011, small businesses can expense up to $500,000 of the first $2 million of business expenditures considered section 179 expenses. These include tangible property used for a business or trade such as computer software.  

Another new tax break allows new businesses to deduct up to $10,000 in start-up expenses on their first tax return. The new Small Business Health Care Tax Credit applies to small employers who pay at least half of employees’ premiums. The credit is 35% of premiums for tax years 2010 through 2013. 

Business owners who work from home may also be permitted to deduct some of the costs for utilities, mortgage and other expenses. A number of other benefits also exist relating to transportation or travel, entertainment and hiring practices. Missing out on small credits and deductions amounting to a couple hundred dollars may not bring a company to its knees, but for a small business or start-up, the additional income can make a large difference. 

“It’s important to examine what new changes are on the horizon, and plan ahead,” said, John Hewitt, CEO of Liberty Tax Service. 

In addition to ensuring small business owners maximize their tax benefits during filing season, tax professionals can help entrepreneurs minimize mistakes, saving them time and money.
    

 

 

 About Liberty Tax Service 

Liberty Tax Service is the fastest -growing retail tax preparation company in the industry’s history.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns.  With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.    

Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax.  Other services include audit assistance, a money back guarantee, and free tax return checking.   

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