As tax season gets into full swing, it’s time to discuss the changes in this year’s taxes that will affect small businesses. From the IRS’ recently enacted payroll tax holiday to writing off up to $10,000 in start-up costs for businesses started in 2010, we have a small business champion for the latest must-claim deductions and write-offs here to inform you.
Mike D’Avolio, CPA and Senior Tax Analyst at Intuit, has been a small business tax expert for more than 20 years and today, he joins Brent Leary for an in-depth discussion about the changes that can benefit you and your small business.
Below are the questions we asked Mike:
- (1:51) Mike, can you tell us a bit about yourself and your background?
- (2:32) Can you by telling us about the high level changes that businesses need to be aware of?
- (3:12) What benefits will these tax incentives give small businesses?
- (3:43) You mentioned exemptions and deductions and credits, can you break down what each one of those are?
- (4:50) Is this year anymore challenging for a small business as opposed to years previous to this?
- (5:24) Is this a sign of the times or is that just something that’s a little out of the ordinary this year?
- (5:52) Let’s talk about start up expenses in 2010, what can we write off?
- (6:43) What are some of the things to stimulate hiring and get companies to do some investing in people that the tax credits can help with?
- (8:04) Does it matter how long the employee stays employed or is it a “one and done” kind of benefit?
- (8:34) So that’s strictly for 2010, do you see that as something that could be around for years or is that just to get the incentive rolling for this year?
- (9:25) What can small businesses do with the health insurance credits?
- (10:25) This was an incentive to get some business moving forward. What about the self-employed health insurance and self employer health insurance credit, what are the differences?
- (11:58) So you can take advantage of these credits and it doesn’t have any impact on the future, correct?
- (13:06) What about retirement plans in 2010 taxes?
- (14:13) You can put money in those plans until April of this year?
- (14:43) Can you explain about the tax differences between a small business with less than 10 employees and one with 25 employees?
- (15:55) Is that a new distinction they’ve put in place here?
- (16:30) Overall, how helpful do you think the things that are in place will be to small businesses filling out their taxes for 2010?
- (17:33) What are some of the things that small business owners should be anticipating when it comes to the year ahead?
- (18:51) How can people best take advantage of all of this? Is this built into some of the software in QuickBooks?
- (20:08) What are some of the potential “red flags” people should be aware of?
- (21:22) Where can people get the best resources?
- (22:11) And you foresee 2011 being a similar challenge?
- (23:00) If you’re a company that is optimistic and you expect 2011 to be a year of growth and you have less than 10 employees, what are some of the generic things they should strategically be planning for?
- (24:49) What about somebody who is just thinking about starting a business this year, what advice would you have for them from a tax standpoint?
- (26:02) And for those who just want to make sure they cover their bases in 2010, your advice is going to the IRS website?
- (27:29) The accountant will work with you and the software, correct?
- (27:56) So you’re thinking that this may be the “new normal” and this is going to be something that we’ll have to be ready to deal with this year and in the next year or so?
- (29:09) Where can people learn more from Intuit regarding tax information?
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