A self-employed individual who earns $150k may pay 39% in federal taxes. Yes, 39%. 15.3% self-employment tax and 24% income tax. Then, add state income tax. Wow! That's a lot.
Benefit Big from the Work Opportunity Tax Credit
If you need to hire workers in your business, this dollar-for-dollar reducer of your taxes is one to know about.
Deduct 100 Percent of Your Employee Recreation and Parties
When you know the rules, you can party with your employees and deduct 100 percent of the cost.
Deduct 100 Percent of Your Business Meals under New Rules
In an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 percent business meal deduction for calendar years 2021 and 2022.
Deducting Disaster Losses for Businesses
Disasters such as storms, fires, floods, and hurricanes damage or destroy property.
If property such as an office building, rental property, a business vehicle, or business furniture is damaged or destroyed in a disaster, your business may qualify for a casualty loss deduction. It’s easier to deduct business casualty losses than personal losses, but the rules are complex.
Business Tax Breaks Thanks to the Recently Enacted CAA
When you operate a business, you have a variety of tax breaks available.
The recently enacted CAA extends and expands some of the breaks. We bring the following selection of them to your attention as a tax-strategy buffet.
Multiply Your Net Worth with a SEP IRA or Solo 401(k)
How do you multiply your net worth? Let the government help. Your investment in your tax-favored retirement with both the SEP IRA and the solo 401(k) retirement plans.
Proof for the Home-Office Deduction
Question. If you have an office outside your personal home—say, downtown—can you have a tax-deductible office inside your home for the same trade or business?
20 Last-Minute Section 199A Tax Reduction Strategies
Remember to consider your Section 199A deduction in your year-end tax planning.
Using Whole or Partial Rooms for Your Home Office
With the COVID-19 pandemic still going on, you may be spending more time working from your home office.