How to Claim a Small Business Tax Exemption for 2017

Table of Contents

1. What Is an Affidavit to Claim a Small Business Tax Exemption?

An affidavit to claim a small business tax exemption is a sworn document certifying your eligibility for specific tax exemptions as a small business. For the 2017 tax year, small businesses could claim exemptions on property taxes, sales taxes, or income taxes depending on their location and compliance with federal, state, or local requirements.

2. Why Would You Need to File an Affidavit for 2017?

Filing a backdated affidavit for 2017 may be necessary if:

You missed the original filing deadline but qualify for an extension or retroactive relief.
You’re responding to an audit or verification request by tax authorities.
You’re amending previous tax filings to claim missed exemptions.

3. Common Small Business Tax Exemptions for 2017

1. Sales Tax Exemption

For purchasing goods or materials used exclusively for production or resale.

2. Property Tax Exemption

For businesses operating in enterprise zones or using renewable energy equipment.

3. Federal Tax Exemptions

Under the Tax Cuts and Jobs Act of 2017, small businesses benefited from a 20% qualified business income deduction, although affidavits may apply only for local exemptions.

4. Who Was Eligible for a Small Business Tax Exemption in 2017?

Eligibility varied by jurisdiction but generally included businesses that:

Met the local definition of a small business based on revenue or employee count.
Operated within industries or zones qualifying for exemptions.
Used purchased goods or property exclusively for business purposes.

5. How to Prepare an Affidavit to Claim a Small Business Tax Exemption for 2017

Step 1: Confirm Eligibility

Review 2017 tax laws applicable to your state or local jurisdiction.

Step 2: Obtain the Correct Form

Many jurisdictions provide templates for affidavits specific to 2017. Check with:
- Your state tax authority.
- Local property tax offices.
- Federal tax agencies (for federal exemptions).

Step 3: Gather Necessary Documentation

Business name and tax ID.
Financial records proving eligibility (e.g., revenue, employee count).
Supporting documents for the exemption (e.g., proof of purchases, property use).

Step 4: Draft the Affidavit

Include:

Business Details: Name, address, and tax identification number.
Exemption Purpose: State the exemption being claimed (e.g., sales tax or property tax).
Eligibility Statement: Declare that the business met all requirements in 2017.
Supporting Details: Reference any attached documentation.
Sworn Statement: Affirm the accuracy of the information under penalty of perjury.

Step 5: Notarize the Affidavit

Most affidavits require notarization to validate the claim.

Step 6: Submit the Affidavit

File the affidavit with the appropriate tax authority. Retroactive filings may require additional forms or explanations.

6. Sample Affidavit to Claim a Small Business Tax Exemption

Affidavit to Claim Small Business Tax Exemption for 2017

I, [Your Full Name], being duly sworn, depose and state:

I am the owner or authorized representative of [Business Name], located at [Business Address], with Tax Identification Number [Tax ID].
[Business Name] qualifies as a small business under the definitions provided by [Tax Authority or Agency].
This affidavit is submitted to claim a tax exemption for the 2017 tax year pursuant to [specific law or regulation].
The exemption pertains to [e.g., property taxes on business equipment purchased in 2017 for exclusive use in production].
Attached to this affidavit are supporting documents, including:
- Proof of purchase dated [Date].
- Receipts showing tax paid.
- [Other relevant documents].
I affirm that the information provided is true and accurate to the best of my knowledge.

Signature: ___________________________
Date: _______________________________

Notary Public: ______________________

7. Deadlines and Extensions for Filing

Original Deadline: Most affidavits were due with 2017 tax filings, typically by April 15, 2018.
Retroactive Filing: If missed, you may file late with approval from your tax authority, often requiring an explanation and additional documentation.

8. Tips for Filing a Successful 2017 Tax Exemption Affidavit

Consult a Professional: Tax laws and retroactive filings can be complex. Seek advice from a tax advisor or attorney.
Provide Clear Documentation: Ensure all supporting documents align with the claim.
Follow Up: Confirm receipt of the affidavit and check for additional requirements.

Frequently Asked Questions (FAQs)

1. Can I still file a small business tax exemption affidavit for 2017?
Yes, but it may depend on your jurisdiction and reason for late filing. Contact your tax authority for guidance.

2. What documents do I need to support my affidavit?
Provide financial records, receipts, proof of property or purchases, and any specific forms required by your jurisdiction.

3. Is notarization required for all affidavits?
Yes, most affidavits must be notarized to validate the information.

4. Can I claim federal exemptions with an affidavit?
Affidavits are generally used for state or local exemptions. Federal exemptions require specific forms.

5. What if my affidavit is denied?
You can appeal the decision or amend your tax filing to correct any issues.

Conclusion

Filing an affidavit to claim a small business tax exemption for 2017 requires careful preparation, supporting documentation, and adherence to tax authority guidelines. By ensuring accuracy and consulting with a tax professional, you can maximize your chances of approval. For additional assistance, contact your local tax authority or visit their website.

Martin taggart