Jack Woods

 

Central Business Solutions 

301 Lynnfield Street, P.O. Box 3169 Peabody, MA 01960

 

Phone:  978-532-0266

Fax:      978-532-9105

 

1147 Main Street, Suite 213, P.O. Box 299 Tewksbury, MA 01876

 

Phone: 978-851-8044

Fax:     978-851-9332

 

Email: jack@cbps.com

November 2020

Business Tax Tips

Insights and Tips

The CARES Act allows corporations to deduct 25% of taxable income for cash contributions made in 2020 to qualified charities. Non-cash contributions don’t qualify. If you’re considering making cash donations in 2020, do so because the percentage drops back down to 10% in 2021, unless Congress intervenes.


If you need new equipment, consider purchasing it before the end of the year. With Section 179 and bonus depreciation rules, you may be able to deduct the entire purchase price this year, instead of depreciating it over the next several years.


Bumping up salaries increases the amount you pay in Social Security, Medicare, and unemployment taxes. But enhancing benefits won’t. So, instead of giving pay raises, consider increasing other benefits. You could give additional paid days off or increase contributions to health insurance which would give you a larger tax write-off.

Consult your tax advisor now regarding recent tax law changes that you must act on before year’s end.


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