Many small businesses that successfully weathered the recent economic downturn got a nasty surprise when they found out that their subsequent tax bills counted any forgiven debt that they managed to find as income. However, according to a recent article at Business Insider, there are several ways that small business owners can cut their tax demands to more manageable levels.
For example, Business Insider says, small businesses that began their operations within the past year can write off much of their obligation to pay taxes on equipment and machinery, as well as those on other types of capital put into use during the same time frame.
Sales of small business stocks, in many cases, are also eligible for a 75 percent exclusion from applicable taxes, Business Insider says.
Experts say that small businesses, as the primary engines of job creation in the U.S., were particularly hard-hit during the recent recession, shedding workers at an alarming rate and contributing greatly to the historically high unemployment rates that have been seen in recent months.