Hispanic Enterprise - October/November 2007 - (Page 42)

MANAGING THE EVER-CHANGING U.S. TAX CODE HOLDS SOME NEW PROVISIONS THAT MAY BENEFIT SMALL BUSINESSES. BUT THE TIME TO TALK TO YOUR ADVISOR IS NOW. By Sara Fernández Cendón TALKING CODE he tax code is a lot like a health problem. Both are high up there on the list of conversation killers, but you ignore either at your own peril. The good news is that if you act early, your chances of saving yourself signiﬁcant discomfort are quite good in both cases. Here’s an early warning in order to help you prepare for the upcoming tax season. Inﬂation and new tax laws, most notably The Small Business and Work Opportunity Tax Act of 2007, are responsible for some of the good news for smallbusiness owners. We spoke with Javier Moreno, H&R Block district manager based in Whittier, California, to get the highlights of some of the new provisions. So read on, but be sure to consult with a tax professional regarding your speciﬁc situation. And remember, if you plan ahead, you’ll not only avoid a headache, but feel healthier all around. DESIGNATED COMMUNITY WHO’S WORKING FOR YOU? 42 T BUSINESS AS USUAL: Many small-business owners are familiar with the Work Opportunity Tax Credit, which provides an incentive to hire employees from groups with a particularly high unemployment rate. Employees must be certiﬁed by the applicable state workforce agency as members of a “targeted group.” Targeted groups include, among others, ex-felons, veterans and residents of “renewal communities” and “empowerment zones” between the ages of 18 and 24. CHANGES: • New legislation has added “rural renewal counties” to the areas in which employees can live in order to qualify as members of a targeted group, and it has expanded the age range to include people from 18 to 39 years of age. • Instead of referring to residents of qualifying areas as high-risk youth, the law now refers to this group as “designated community residents.” • The form employers must ﬁll out requesting certiﬁcation for their employees in order to claim this credit (form 8850) is now due no later than the 28th day after the eligible employee begins work. NOTE: In most cases, in order to qualify for the incentives, businesses must be located in designated empowerment zones, renewal communities or rural renewal counties, in addition to hiring employees who live in those areas. But some incentives are available to all businesses regardless of where they are located. To ﬁnd out if a particular location is within a designated renewal or empowerment zone, go to www.hud.gov/crlocator. October/November 2007 CREDIT: HISPANIC ENTERPRISE http://www.hud.gov/crlocator

Table of Contents Feed for the Digital Edition of Hispanic Enterprise - October/November 2007

Hispanic Enterprise - October/November 2007 Contents BIZBUZZ: Business Briefs Trendsetters BIZTECH: Personally Digital BizLife - Travel: The Mobile Meeting Motoring: Is What You Drive, Who You Are? Q&A - Fact Tank for the Hispanic Population Hispanic Commerce Cover Story: Tiles with Style Success & Motivation: Grammy Whammy Finance: Talking Code Event: Masterminds NCLR Report - Improving your Triple Bottom Line Politics & Government: Keep on Truckin' Managing: Avoiding an Identity Crisis Franchising: Beyond the Brand Finance & Investing - Talking Money Movers & Shakers Regional Report - Louisiana, Louisiana Chamber Focus - On the Island of Enchantment

Hispanic Enterprise - October/November 2007

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