Pass-Through Deductions – DougFreemanCPA.com

9 tax considerations if you’re starting a business as a sole proprietor

Entrepreneurs, Medical Deductions, Quarterly Estimated Tax Payments, Self Employment Tax, Small Business, Small Business Owners, Small Business Tips, Sole Proprietors / Douglas Freeman

When launching a small business, many entrepreneurs start out as sole proprietors. If you’re launching a venture as a sole proprietorship, you need to understand the tax issues involved. Here are nine considerations: 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you’re currently eligible to claim […]

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The advantages of using an LLC for your small business

Federal Income Tax, Limited Liability Company, LLC, Partnerships, S Corporation, Shareholder, Small Business, Small Business Tax Tips / Douglas Freeman

If you operate your small business as a sole proprietorship, you may have thought about forming a limited liability company (LLC) to protect your assets. Or maybe you’re launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might

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Advantages and disadvantages of claiming big first-year real estate depreciation deductions

(NIIT) Net Investment Income Tax, Depreciation, Depreciation Deduction (Section 179), LLC, Past-Through Entities, Qualified Improvement Property (QIP), Real Estate, Small Business, Small Business Tax Tips / Douglas Freeman

Your business may be able to claim big first-year depreciation tax deductions for eligible real estate expenditures rather than depreciate them over several years. But should you? It’s not as simple as it may seem. Qualified improvement property. For qualifying assets placed in service in tax years beginning in 2023, the maximum allowable first-year Section

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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

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

Is an LLC the right choice for your small business?

Assets, Limited Liability Company, LLC, Partnerships, S Corporation, Tax Deduction, Tax Savings / Douglas Freeman

Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might be

Is an LLC the right choice for your small business? Read More »

6 last-minute tax moves for your business

Business Income Tax, Deductable Expenses, Depreciation, Donations, Income Tax, Internal Revenue Service, Investment, Past-Through Entities, Retirement, Small Business, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

Tax planning is a year-round activity, but there are still some year-end strategies you can use to lower your 2018 tax bill. Here are six last-minute tax moves business owners should consider: Postpone invoices. If your business uses the cash method of accounting, and it would benefit from deferring income to next year, wait until

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