Time to Check Your Business Credits and Deductions!

          Deductions and credits help the bottom line for every self-employed person and small business owner. With most of the year still ahead, this is a good time to check your options and eligibility which will allow you the ability to plan for the future.

           Business Expenses. To be considered a deductible business expense, the expense must be considered ordinary (common and acceptable in this trade) and necessary (helpful and appropriate for the business). For example, if part of a Taxpayer’s home is used for a business, some of the mortgage interest insurance, utilities and depreciation can be deducted. Usually rent can be considered a deductible expense if the property is used for the business.

          Business Credits. A new credit that was created by the Tax Cuts and Jobs Act (TCJA) is a credit for paid family and medical leave. To be eligible, employers must have a written policy that meets certain requirements and pays at least 2 weeks of paid leave to full time employees on leave. The amount paid must meet a certain percentage of the wages normally paid the employees. Talk to a trusted Qualified Tax Professional to find out more about how these options can affect your business.

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