Category: Small Business Tax Briefs

  • Use The Tax Code To Make Business Losses Less Painful

    Use The Tax Code To Make Business Losses Less Painful

    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…

  • Education Benefits Help Attract, Retain, and Motivate Your Employees

    Education Benefits Help Attract, Retain, and Motivate Your Employees

    One popular fringe benefit is an education assistance program that allows employees to continue learning and perhaps earn a degree with financial assistance from their employers. One way to attract, retain and motivate employees is to provide education fringe benefits so that team members can improve their skills and gain additional knowledge. An employee can…

  • Buying a New Business Vehicle? A Heavy SUV is a Tax-Smart Choice

    Buying a New Business Vehicle? A Heavy SUV is a Tax-Smart Choice

    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…

  • Why An LLC Might Be The Best Choice Of Entity For Your Business

    Why An LLC Might Be The Best Choice Of Entity For Your Business

    The business entity you choose can affect your taxes, your personal liability, and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide you with the best…

  • Keeping Meticulous Records Is The Key To Tax Deductions And Painless IRS Audits

    Keeping Meticulous Records Is The Key To Tax Deductions And Painless IRS Audits

    If you operate a business, or you’re starting a new one, you know you need to keep records of your income and expenses. Specifically, you should carefully record your expenses in order to claim all of the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported…

  • 10 Facts About The Pass-Through Deduction For Qualified Business Income

    10 Facts About The Pass-Through Deduction For Qualified Business Income

    Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction, or Section 199A deduction.  It’s available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships and S corporations. It may also be claimed…

  • Traveling for business again? What can you deduct?

    Traveling for business again? What can you deduct?

    As we continue to come out of the COVID-19 pandemic, you may be traveling again for business. Under tax law, there are a number of rules for deducting the cost of your out-of-town business travel within the United States. These rules apply if the business conducted out of town reasonably requires an overnight stay. Note…

  • The Cents-Per-Mile Rate For Business Miles Decreases Again For 2021

    The Cents-Per-Mile Rate For Business Miles Decreases Again For 2021

    This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business decreased by one-and-one-half cents, to 56 cents per mile. As a result, you might claim a lower deduction for vehicle-related expenses for 2021 than you could for 2020 or 2019. This is the second year in…

  • Can Your Business Benefit From The Enhanced Employee Retention Tax Credit?

    Can Your Business Benefit From The Enhanced Employee Retention Tax Credit?

    COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law. Background on the credit The CARES Act, enacted in March of 2020, created the ERTC. The credit:…

  • New Law Doubles Business Meal Deductions And Makes Favorable PPP Loan Changes

    New Law Doubles Business Meal Deductions And Makes Favorable PPP Loan Changes

    The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021 (CAA), which also includes other laws within it. Business meal deduction increased The new law…