At the end of 2020 the stimulus legislation passed a provision that removes the 50% limit on deducting business meals provided by restaurants in 2021 and 2022 making those meals fully deductible. Food and Beverage Expense In general, the ordinary and necessary food and beverage expenses of operating your business are deductible. However, the deduction is…
There is a language to taxes, and unfortunately, only accountants have been primarily taught that language. Business owners want to know what they don’t know when it comes to keeping more of what they make. After all, it’s not how much you make, but how much you keep: reducing your taxes and keeping as much…
The Right Entity Choice: Should You Convert From a C Corporation to an S Corporation? The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax…
Drive more savings to your business with the: Heavy SUV Tax Break Are you considering replacing a car that you’re using in your business? There are several tax implications you should keep in mind. A cap on deductions Cars are subject to more restrictive tax depreciation rules than those that apply to other…
QBI deduction basics and a year-end tax tip that might help you qualify 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…
Cash in on depreciation tax savers As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall…
The importance of S corporation basis and distribution elections S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as…
Tax Planning Section 179 Expense Section 179 allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price. Section 179 is more beneficial to small…
Setting Sales Goals with KPIs A break-even analysis is a necessary part of any solid business plan. This empowers us to know where our sales revenue needs to be to cover the costs of running your business and help us quickly establish sales targets for desired levels of profitability. With any business, setting sales goals…
Health Savings Accounts forYour Small Business Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). Or perhaps you already have an HSA. It’s a good time to…
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