Business Deductions – DougFreemanCPA.com

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) / Douglas Freeman

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 […]

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

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

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 / Douglas Freeman

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

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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 / Douglas Freeman

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

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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 / Douglas Freeman

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

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It’s time for your small business to think about year-end tax planning

Accrual Method of Accounting, Business Deductions, Cash Method of Accounting, Depreciation Deduction (Section 179), Estimated Tax Payments, Qualified Business Income Deducton (QBI), Small Business, Small Business Owners, Taxes 2024, Year End Planning / Douglas Freeman

With Labor Day in the rearview mirror, it’s time to take proactive steps that may help lower your small business’s taxes for this year and next. The strategy of deferring income and accelerating deductions to minimize taxes can be effective for most businesses, as is the approach of bunching deductible expenses into this year or

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Working remotely is convenient, but it may have tax consequences

Business Deductions, Business Expenses, Employees, Federal Income Tax, Payroll Tax, Remote Working, Small Business, State Income Tax, State Tax, Tax Laws / Douglas Freeman

Many employees began working remotely during the pandemic and continue doing so today. Remote work has many advantages for employers and employees, and as a result, it’s here to stay in many industries. But it may also lead to some tax surprises, especially if workers cross state lines. Double taxation may occur It’s not unusual

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When partners pay expenses related to the business

Business Deductions, Business Expenses, Business Meals and Entertainment, Limited Liability Company, LLC, Partnerships, Small Business, Small Business Owners / Douglas Freeman

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occur in service partnerships such as an architecture or law firm. For example, partners in service partnerships may incur entertainment expenses in developing new client relationships. They may also incur expenses for: transportation to get to

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

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

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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