Experts: Small businesses should start 2017’s tax planning now

Little can be done to help small business owners get their finances straight in time for tax filings this April. However, if they haven’t filed taxes yet, they can still try to maximize benefits from the current tax rate.

“Given the results of the election, it is likely tax reform will be enacted,” said David Rehrauer, managing director of Tax for KPMG in Detroit. “Initial information suggests the tax rate will decrease and some other deductions/incentives may be eliminated. Companies should consider accelerating deductions into 2016 and/or deferring revenue recognition to future years.”

Startups, he said, should consider if they are eligible to claim a research and experimentation credit. A provision in the PATH Act allows qualifying companies to take up to $250,000 in credits that offset payroll taxes.

Moving forward though, Lisa Carroll, audit partner at KPMG Private Markets Group in Detroit, said there are three things small business owners need to do to begin 2017 on the right foot.

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