Small business tax laws are the laws that are binding on the owners of small business concerns. These laws have to be abided by and business has to be carried out in accordance with the rules that these laws lay down. The small business tax laws of America underwent quite a few changes in the year 2006.
A federal telephone excise tax of 3% was charged until recently. This law had been in vogue since 1898 until the IRS decided to do away with it. The Form 1040 has a space for the applicable amount of telephone bills and a refund can be received. An option for multiple direct deposit is also available according to tax laws for small businesses.
Money got from tax refunds can be saved by opting for depositing the refund amounts in three different accounts. Small business tax laws state that by filling up forms 5695 and 1040, tax deductions or breaks can be obtained on energy-saving home improvements that have been made by small business concerns. Grater breaks can be received if appliances working on solar energy are used.
The same laws of tax credit on small business expenses extends to cars used for business purposes that are run on alternative fuel.
Small business tax laws relating to donations have been amended in order to curb the unrighteous benefits received by both the donors and donees.
The quality of the donated objects is closely watched by the IRS. If the goods are of poor quality, then tax exemptions are not offered. Donation documentations should not contain any loopholes or discrepancies. Another tax law states that no taxes would be charged if a person above seventy and a half years of age makes charitable donations.
Kiddie tax laws have also been tightened with the aim of annulling tax evasions. In case of husband/wife businesses, the business will be treated as a partnership for the purpose of federal taxes if the joint venture has the wife and the husband as members and both o them participate actively in the business.
Last Updated on : 29th July 2013