2020 has turned many things upside down, not the least of which is year end tax planning. Where in years past, it was generally good strategy to accelerate deductions into the current year (and defer income, for those on cash basis), it might make more sense this year to wait on those larger expenditures until after January 1, and instead accelerate income (where possible) into 2020.
Rehiring? The Work Opportunity Tax Credit (WOTC) is slated to expire December 31. This is a one-time (use it or lose it) tax credit for hiring from targeted groups (long-term unemployed, veterans, vocational rehab referrals, and a few more). While this credit could be extended, we have heard nothing affirmative, so this may be your last chance to snag it.
These are topics for discussion with a qualified professional (do-it-yourself tax prep software or whatever software you might use to manage your business checking account can’t do this). We invite you to contact either of our offices for a consultation.