As a small business owner, you have to make sure that your books are in order and that you can follow the laws governing your business. In order to do so, you need to have a good overview of your revenue and expenses. Proper bookkeeping will save you time, nerves, and money. Tips to Keep…
If you’re planning to acquire a qualified electric commercial clean vehicle, you may want to wait to take delivery after December 31, 2022, but before January 1, 2033. How much is the credit? Commercial vehicles have some significant differences than Section 30D for non-commercial electric vehicles. The credit is the lesser of: 30% of the…
One provision in the Inflation Reduction Act aimed at improving IRS customer service that has been met with criticism. The legislation allocates $79.6 billion to the agency over the next ten years. That’s more than six times the current annual IRS budget. More than $45 billion of this money will be earmarked for tax…
The Inflation Reduction Act of 2022 is a proposed bill in the 117th United States Congress. Its main objectives include curbing inflation, reducing the deficit, investing in domestic energy production, Medicare’s ability to negotiate drug prices, and promoting clean energy solutions. Below is a summary of some of its initiatives. Inflation Reduction The Inflation Reduction…
As year-end approaches, you may be wondering how you can offset income to reduce your tax burden. As a business owner, and individual, here are options. Tax-Loss Harvesting Bunching Expenses Deferring Income Integrating a tax-aware solution into your investment plan Gifting Stocks Investing Spare Cash One of the most effective tax strategies to…
If you own a rental property and incurred a loss during the year, you may be able to deduct your loss as an expense, known as depreciation tax write-offs. They allow you to write off the cost of the subject property over a predetermined period of time. In essence, these losses are business expenses. …
There are two main types of revenue streams in a business—active and passive. They are related to the product or service being offered and the method of payment. Some revenue streams can be classified as sales, whereas others are not. The type of revenue stream that is best for your business will depend on the…
Income losses and expense offsets are used to reduce the tax burden on an individual or company. These can be carried forward or backward, depending on the nature of the loss. Generally, income losses are allowed against current profits while capital losses are never allowable against any kind of income. Why are income losses…
Are you unsure about whether you should change your business formation? Maybe your company’s growing. Maybe taxes are piling up and you want a break. Maybe you want to employee staff. Any or all of those could be reasons to change your business formation or entity. Why would I change my business formation? The…
According to these small business statistics, “52.1% of small employer firms in the U.S. are S-corporations.” On the flip side, “81% of the total small businesses, approximately 26.5 million, are non-employer companies, which means they do not have employees. ” Which makes the most sense for my startup? Unfortunately, that depends on what your…