Facebook Linkedin Twitter

Business Deductions

New law eases the limitation on business interest expense deductions for 2025 and beyond

(ATI) Adjusted Taxable Income, Business Deductions, Business Income Tax, Business Interest Expenses, C Corporation, Limited Liability Company, One, Big, Beautiful Bill Act, Partnerships, Pass Through Taxation, S Corporation, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

Interest paid or accrued by a business is generally deductible for federal tax purposes. But limitations apply. Now some changes under the One Big Beautiful Bill Act (OBBBA) will result in larger deductions for affected taxpayers. Limitation basics The deduction for business interest expense for a particular tax year is generally limited to 30% of […]

New law eases the limitation on business interest expense deductions for 2025 and beyond Read More »

What you need to know about deducting business gifts

Business Deductions, Business Meals and Entertainment, Gifts, Holiday gifts /

Thoughtful business gifts are a great way to show appreciation to customers and employees. They can also deliver tax benefits when handled correctly. Unfortunately, the IRS limits most business gift deductions to $25 per person per year, a cap that hasn’t changed since 1962. Still, with careful planning and good recordkeeping, you may be able

What you need to know about deducting business gifts Read More »

DOs and DON’Ts to help protect your business expense deductions

Business Deductions, Home Office Deduction, Small Business, Small Business Owners, Small Business Tips /

If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting

DOs and DON’Ts to help protect your business expense deductions Read More »

The One, Big, Beautiful Bill could change the deductibility of R&E expenses

(R&D) Research and Development, Business Deductions, Business Expenses, Cash Flow, Research Tax Credit, Small Business, Small Business Owners /

The treatment of research and experimental (R&E) expenses is a high-stakes topic for U.S. businesses, especially small to midsize companies focused on innovation. As the tax code currently stands, the deductibility of these expenses is limited, leading to financial strain for companies that used to be able to expense them immediately. But proposed legislation dubbed

The One, Big, Beautiful Bill could change the deductibility of R&E expenses Read More »

Can you turn business losses into tax relief?

Business Deductions, Business Income Tax, C Corporation, Net Operating Loss (NOL), Small Business, Small Business Owners, Tax Planning /

Even well-run companies experience down years. The federal tax code may allow a bright strategy to lighten the impact. Certain losses, within limits, may be used to reduce taxable income in later years. Who qualifies? The net operating loss (NOL) deduction levels the playing field between businesses with steady income and those with income that

Can you turn business losses into tax relief? Read More »

Ways to manage the limit on the business interest expense deduction

(ATI) Adjusted Taxable Income, Business Deductions, Small Business, Small Business Owners, Tax Cuts and Job Acts (TCJA) /

Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created Section 163(j), which generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, it’s important to understand the impact of the

Ways to manage the limit on the business interest expense deduction Read More »

Business Deductions, Business Expenses, Self Employed, Small Business Tax Tips, Standard Business Mileage Rate, Vehicle Expenses /

Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require

Read More »

How inflation will affect your 2024 and 2025 tax bills

401K, 403 (b), Business Deductions, Deductions, Federal Gift Tax, Federal Tax Deductions, Federal Taxes, FSA, Inflation, IRA, Stand Deduction Will Increase in Slightly In 2025, Taxes 2025 /

Inflation can have a significant impact on federal tax breaks. While recent inflation has come down since its peak in 2022, some tax amounts will still increase for 2025. The IRS recently announced next year’s inflation-adjusted amounts for several provisions. Here are the highlights. Standard deduction. What does an increased standard deduction mean for you? A

How inflation will affect your 2024 and 2025 tax bills Read More »

When can you deduct business meals and entertainment?

Business Deductions, Business Meals and Entertainment, Business Travel Deductions, Business Travel Expense, Federal Tax Deductions, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

You’re not alone if you’re confused about the federal tax treatment of business-related meal and entertainment expenses. The rules have changed in recent years. Let’s take a look at what you can deduct in 2024. Current law The Tax Cuts and Jobs Act eliminated deductions for most business-related entertainment expenses. That means, for example, that

When can you deduct business meals and entertainment? Read More »

Make year-end tax planning moves before it’s too late!

AGI (Adjustable Gross Income), Business Deductions, Federal Taxes, Itemized Deduction, Small Business, Small Business Owners, Tax Planning /

With the arrival of fall, it’s an ideal time to begin implementing strategies that could reduce your tax burden for both this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2024. You may not itemize because of the high 2024 standard

Make year-end tax planning moves before it’s too late! Read More »