“From an economic standpoint, it is the small businesses that drive the local New Orleans economy.”
New Orleans being a port city is a melting pot of many different ethnic and cultural backgrounds, leading to all of our wonderful foods and music. If there is a place in the United States where you can let loose and just have a good time, New Orleans is that place. Live local music fills the streets with pleasurable sounds and our top chefs bring appetizing aromas into the air. With the NFL football season fast approaching, fans gear up for Sundays of excitement from our beloved Saints football team. When the Saints are playing well it really helps unite our city around one common interest and everyone is able to put their differences aside and enjoy the moment.
From an economic standpoint, it is the small businesses that drive the local New Orleans economy. Having an understanding of deductions and credits for small business in Louisiana can really help you and your client grow and establish lasting relationships. With that being said, here are a few credits and deductions to be mindful of when preparing Louisiana tax returns:
1) Small Business Health Care tax credit — Most businesses in Louisiana have fewer than 50 employees and average wages are less than $50,000 per year.
2) Louisiana Fair Plan Tax credit — this is probably the most missed credit for out of state preparers. A refundable credit on Louisiana homeowners’ insurance policies. This is a must ask for any Louisiana homeowner.
3) Louisiana Inventory Tax Credit — Another credit that is often overlooked by many tax preparers. Be on the look-out for any business that possesses inventory in Louisiana.
4) Louisiana Film Credits — even though there are very few film businesses in Louisiana, many out-of-state film companies amass these credits and then sell them to dealers for there are transferable. In some cases these credits can be purchased at a discount and can also be used to pay prior year taxes to avoid late interest and penalties.
On a final note, I would like to remind those preparing taxes for those who were affected by flooding this year in Louisiana and Texas. Review the casualty loss regulations and stay abreast of any updates from the IRS. Also, keep in mind useful tools such as form 1045 for NOL carry backs.
Tax season will be here before we know it. Stay safe and enjoy life.
Edward Weidner CPA
