Business Expenses – Page 2 – DougFreemanCPA.com

Launching a small business? Here are some tax considerations

Business Deductions, Business Expenses, Employees, Qualified Business Income Deducton (QBI), Retirement, Simples, Simplified Employee Pension (SEP), Small Business, Sole Proprietors / Douglas Freeman

While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating with that entity. The pass-through deduction. To the extent your business generates qualified business income […]

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If you run a business from home, you could qualify for home office deductions

2020 Tax Return, Business Deductions, Business Expenses, Home Office Deduction / Douglas Freeman

During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the

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Drive more savings to your business with the heavy SUV tax break

Business Deductions, Business Expenses, Deductable Expenses, Depreciation, Depreciation Deduction (Section 179), Equipment, Income Tax, Small Business / Douglas Freeman

Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind. A cap on deductions. Cars are subject to more restrictive tax depreciation rules than those that apply to other depreciable assets. Under so-called “luxury auto” rules, depreciation deductions are artificially “capped.” So is the

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The tax rules for deducting the computer software costs of your business

Business Deductions, Business Expenses, Business Technology, Buy vs Lease Business Equipment, Deductions, Depreciation Deduction (Section 179), Income Tax, Leasing, Software / Douglas Freeman

Do you buy or lease computer software to use in your business? Do you develop computer software for use in your business, or for sale or lease to others? Then you should be aware of the complex rules that apply to determine the tax treatment of the expenses of buying, leasing or developing computer software.

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Can investors who manage their own portfolios deduct related expenses?

Business Expenses, Capital Gains, Deductable Expenses, Deductions, Home Office Deduction, Income Tax, Individual Income Tax, Investment, Tax Cuts and Job Acts (TCJA), Trader vs Investor / Douglas Freeman

In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade or

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Take a fresh look at your company’s brand

Budgeting, Business Expenses, Marketing, Small Business, Strategic Business Planning / Douglas Freeman

A strong, discernible brand is important for every business. Even a company that never undertakes a formal branding effort will, over time, establish a brand through its communications with customers and interactions with the public. For this reason, it’s a good idea to regularly take a fresh look at your brand and determine whether tweaks

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Good records are the key to tax deductions and trouble-free IRS audits

Business Audit, Business Deductions, Business Expenses, Business Income Tax, Business Meals and Entertainment, Business Travel Deductions, Deductions, Documentation, Gifts, Income Tax, Internal Revenue Service (IRS), Small Business, Tax Deduction, Tax Record Retention / Douglas Freeman

If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you

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PPP Flexibility Act eases rules for borrowers coping with COVID-19

(CARES ACT), Business Expenses, Coronavirus Aid (CARES Act), COVID-19, Employees, Paycheck Protection Program, Payroll & HR Functions, Small Business, Small Businesses Administration / Douglas Freeman

As you may recall, the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) back in April to help companies reeling from the economic impact of the COVID-19 pandemic. Created under a provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the PPP is available to U.S. businesses with fewer than 500

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Fortunate enough to get a PPP loan? Forgiven expenses aren’t deductible

(CARES ACT), Business Expenses, Deductable Expenses, Deductions / Douglas Freeman

The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan made under the PPP, and The income associated with the forgiveness is excluded from gross

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Using your financial statements during an economic crisis

Accounting, Assets, Business Expenses, COVID-19, Entrepreneurs, Financial Statements, Small Business / Douglas Freeman

The economic fallout from the coronavirus (COVID-19) pandemic has forced business owners to reevaluate their operations and make difficult decisions. One place to look for the information you need to make rational, reasonable moves is your financial statements. Under U.S. Generally Accepted Accounting Principles, these typically comprise a statement of cash flows, a balance sheet

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