Business Deductions – DougFreemanCPA.com

When businesses may want to take a contrary approach with income and deductions

Leave a Comment / Business Deductions, Business Income Tax, Capital Gains, Corporate Federal Income Tax Rate, Depreciation Deduction (Section 179), Uncategorized / Douglas Freeman

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income […]

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Coordinating Sec. 179 tax deductions with bonus depreciation

Leave a Comment / Business Deductions, Depreciation, Depreciation Deduction (Section 179), Federal Tax Deductions, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

Your business should generally maximize current-year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. These two deductions can potentially allow businesses to write off some or all of their qualifying asset expenses in Year

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New per diem business travel rates kicked in on October 1

Business Deductions, Business Meals and Entertainment, Business Travel Rates 2024, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

Are employees at your business traveling and frustrated about documenting expenses? Or perhaps you’re annoyed at the time and energy that goes into reviewing business travel expenses. There may be a way to simplify the reimbursement of these expenses. In Notice 2023-68, the IRS announced the fiscal 2024 special “per diem” rates that became effective

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What types of expenses can’t be written off by your business?

Business Deductions, Federal Income Tax, Federal Tax Deductions, Internal Revenue Service (IRS), Small Business Tax Tips, Small Business Tips, Tax Deduction / Douglas Freeman

If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general

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Update on depreciating business assets

Assets, Business Deductions, Business Equipment, Depreciation Deduction (Section 179), Qualified Business Income Deducton (QBI), Small Business, Small Business Owners, Small Business Tax Tips, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

Update on depreciating business assets C The Tax Cuts and Jobs Act liberalized the rules for depreciating business assets. However, the amounts change every year due to inflation adjustments. And due to high inflation, the adjustments for 2023 were big. Here are the numbers that small business owners need to know. Section 179 deductions. For

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Corporate officers or shareholders: How should you treat expenses paid personally?

Business Deductions, C Corporations, Shareholder, Small Business, Small Business Tax Tips / Douglas Freeman

If you play a major role in a closely held corporation, you may sometimes spend money on corporate expenses personally. These costs may end up being nondeductible both by an officer and the corporation unless the correct steps are taken. This issue is more likely to happen with a financially troubled corporation. What can’t you

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Use the tax code to make business losses less painful

Business Deductions, Net Operating Loss (NOL), Small Business, Small Business Owners, Small Business Tax Tips, Tax Code, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction. The net operating loss (NOL) deduction addresses the tax inequities that can

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Buying a new business vehicle? A heavy SUV is a tax-smart choice

Business Deductions, Business Equipment, Business Expenses, Business Vehicle, Depreciation, Depreciation Deduction (Section 179), Vechicle / Douglas Freeman

If you’re buying or replacing a vehicle that you’ll use in your business, be aware that a heavy SUV may provide a more generous tax break this year than you’d get from a smaller vehicle. The reason has to do with how smaller business cars are depreciated for tax purposes. Depreciation rules. Business cars are

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Do you run a business from home? You may be able to deduct home office expenses

Actual Expenses Method, Business Deductions, Business Expenses, Business Income Tax, Home Office Deduction, Self Employed, Small Business Owners, Small Business Tax Tips / Douglas Freeman

Many people began working from home during the COVID-19 pandemic — and many still work from their home offices either all the time or on a hybrid basis. If you’re self-employed and run your business from home or perform certain functions there, you might be able to claim deductions for home office expenses against your

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Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?

Business Deductions, Qualified Business Income Deducton (QBI), Small Business, Sole Proprietors / Douglas Freeman

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations, as well as

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