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It's already Memorial Day, so summer is right around the corner. While you're enjoying the warmer weather, heat up your tax savings with some timely tax techniques.
In many U.S. cities, houses bought just a few years ago have more than doubled in value. But unless you plan to move soon, such a "paper windfall" means nothing other than a soaring property tax bill.
If you hire 16- or 17-year-olds this summer, don't overlook a tax credit worth up to $1,200 per eligible employee. The Work Opportunity Tax Credit (WOTC) allows you to secure the credit if those new employees live in an "empowerment zone, enterprise community or renewal community," as designated by the federal government.
While employees are off enjoying themselves on vacation, you might be stressing over how to cover their absence. One option: Use workers provided by professional leasing agencies. If you're lucky, the workers fit in so well with your company that you might be inclined to hire them permanently as regular employees (not to replace the vacationing employee, of course, but rather in another department or in another position).
Heads up: The IRS plans to ratchet up the audit pressure on small businesses in the coming months.