Small Business Tax Credit - Americans with Disabilities Act > NetSparsh

Home
>
Tax
>
Small Business Tax Credit - Americans with Disabilities Act

Small Business Tax Credit - Americans with Disabilities Act

Many small businesses complain when confronted with the expense of complying with the Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset the costs. Importantly, one tax incentive comes in the form of a tax credit, which is far more valuable than a tax deduction when it comes to creating tax savings.

Disable Access Tax Credit

If you make your small business accessible to persons with disabilities, you can take an annual tax credit. Your business is eligible if you earned one million or less the previous year or had 30 or fewer employees. If you meet this test, you can claim a tax credit of 50 percent of your expenditures to a maximum of $5,000. Since this is a tax credit, it is deducted from your total tax liability.

To claim this tax credit your expenditures must be paid or incurred to enable your business to comply with the Americans with Disabilities Act. Expenditures might include:

1. Purchase of adaptive equipment or modification of equipment;

2. Production of print materials in alternate formats such as Braille or audio; and

3. Sign language interpreters for employees or customers.

Modifications to buildings or offices also qualify as long as two criteria are met. First, the modifications cannot be construction of something new. Second, the building must have been in service prior to November 5, 1990.

Barrier Removal Tax Deduction

All businesses can take a tax deduction for expenditures incurred to remove physical, structural or transportation barriers for disabled individuals in the work place. This tax deduction carries no restrictions in regard to revenues earned or number of employees. Businesses may claim up to $15,000 a year as a tax deduction. Expenditure amounts exceeding this amount may also be claimed, but are subject to depreciation calculations.

To claim the barrier removal tax deduction, your expenditures must be related to making a facility or vehicle accessible to disabled persons. Examples include:

1. Providing ramps and curb cuts;

2. Making restrooms accessible to persons in wheelchairs; and

3. Expanding the width of sidewalks to at least 48 inches.

Significant Tax Break

Small business owners can double their tax saving pleasure by claiming both of these tax incentives in the same tax year. If a small business spent $20,000 creating wheelchair access to an office, it could take a $5,000 tax credit and a $15,000 tax deduction.

These tax incentives are in place to significantly reduce the burden of complying with the Americans with Disabilities Act. If you failed to claim the credit or deduction during the last three tax filing years, you should file amended tax returns to get a refund.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Motley Fool
Hate Taxes? 37 States Make Social Security Tax Free
Motley Fool
Over the course of your career, you'll probably have tens of thousands of dollars in Social Security payroll taxes withheld from your paychecks. Workers are confident that by paying those taxes up front, they'll be able to collect Social Security ...

and more »

Spain considers new taxes on internet companies
ABC News
Spain's Socialist government wants to introduce new taxes on big internet companies and on financial transactions as a way of paying for improved pensions and public services. The proposed tax on digital services will be levied on companies with annual ...

and more »

Wall Street Journal
New 'Opportunity Zone' Tax-Break Rules Offer Flexibility to Developers
Wall Street Journal
WASHINGTON—The Trump administration, trying to accelerate tax-advantaged investment in low-income areas, offered generous definitions and rules Friday in a long-awaited package of regulations. The Treasury Department designed the rules for the ...
Investors can get big tax breaks if they invest in 'opportunity zones' under new Treasury rulesCNBC
IRS unveils proposed rules for tax law's big capital gains breakAccounting Today
Goldman Sachs and others line up for fresh tax breaksCNN
Bloomberg -IRS.gov -ArcGIS Online -Urban Institute
all 163 news articles »

Salt Lake Tribune
Poor and middle-income Utahns pay more of their income for taxes than do the rich, study says
Salt Lake Tribune
The poorest 20 percent of Utah households — which earn less than $23,000 a year — pay 7.53 percent of their income for taxes. The top 1 percent pay 6.68 percent, says the study by the Institute on Taxation and Economic Policy and Voices for Utah ...

kfor.com
Lawsuit targets medical marijuana registration, taxes
NewsOK.com
Oklahoma City — A Tulsa medical marijuana grower is suing the state over what it calls excessive fees and taxes. Caulfield Holdings Botanicals, a Tulsa company that intends to grow marijuana for the medical market, and Alicia Vargas, a medical ...
State health department, bureau of narcotics, tax commission sued over medical marijuana fees, taxeskfor.com
New medical marijuana lawsuit targets state of Oklahoma over tax, licensing issuesTulsa World

all 16 news articles »

Forbes
6 Whopping Tax Mistakes That Can Ruin Your Retirement
Forbes
Sadly, tax planning doesn't end when you retire. The Internal Revenue Service (IRS) still wants its share of your retirement earnings. While many live on less in retirement, others may end up spending more. That could lead to higher tax bills ...
3 legit ways to shield your kids from tax burdensYahoo Finance

all 19 news articles »

Yahoo Finance
MAP: The most and least tax-friendly states
Yahoo Finance
If you want to avoid paying lots of taxes, you might want to steer clear of the Northeast and venture towards the South instead. According to Kiplinger, these are the most and least tax-friendly states. Many states that make up the Northeast were among ...
In Democratic tax plan, the middle class pays while rich find sheltersThe Hill
Which state has fairest tax structure: Oregon, Washington or California? Survey says ...KVAL
Report calls Washington the most regressive tax structure...againseattlepi.com
Hawaii News Now
all 18 news articles »

The Advocate
Stephanie Grace: New Orleans City Council's split with Mayor Cantrell on taxes comes at odd time
The Advocate
Last week, the council voted unanimously to seek a 2-mill property tax increase to provide home-delivered meals and other services to elderly residents. The tax, which is now one procedural step from appearing on the March ballot, would generate about ...

New York Times
In Liberal San Francisco, Tech Leaders Brawl Over Tax Proposal to Aid Homeless
New York Times
Venture capitalists and companies including the online payments start-up Stripe are lobbying and donating money to defeat the tax. And Jack Dorsey, chief executive of Twitter and Square, who opposes the measure, has publicly bickered with Mr. Benioff.
Jack Dorsey complains about 'unfairness' in San Francisco homeless tax on corporationsThe Hill
Jack Dorsey Sees 'Unfairness' in San Francisco Homeless TaxBloomberg

all 15 news articles »

Phys.Org
Taxes and caps on carbon work differently but calibrating them poses the same challenge
Phys.Org
A carbon tax makes fossil fuels more expensive, in turn encouraging utilities, businesses and consumers to use less of them. At the same time, it makes alternatives, such as wind and solar power more competitive – encouraging their use. When designed ...

and more »

Google News

Small Business Tax Credit - Americans with Disabilities Act

Tax Tax