Many small business owners who received tax refunds plan to invest the money in their businesses, according to a new survey.
Balboa Capital, a company that provides equipment financing and small business loans, surveyed a group of small business owners who filed their taxes in 2016, and found that 14 percent received a refund, while 56 percent did not receive a refund. Small business owners who received tax refunds this year intend to use their returns for either equipment and technology acquisitions, debt consolidation, expansion initiatives, and/or increased employee hiring.
Seventy-five percent of the small business owners polled said they used the Section 179 tax deduction to deduct the full or partial price of business equipment that was purchased and put into place in 2015.
Nearly 8 in 10 of the small business owners who responded to the survey said they saw their revenues increase in Q1 2016, with 76 percent of the survey respondents reporting moderate to significant revenue increases in Q1. In addition, 79 percent of survey respondents expect to see growth in the U.S. economy during the first half of 2016.
“Small business owners had a strong first quarter and are anticipating a hike in economic growth during the first half of 2016, and this is leading to increased confidence and business investing,” said Balboa Capital director of marketing Jake Dacillo in a statement. “Respondents to our survey who received tax refunds indicate they will use their returns to purchase equipment and inventory, hire more employees and expand their operations.”
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