The Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) report, which became effective on January 1, 2024, is a regulatory requirement of the Corporate Transparency Act (CTA) of 2021. Specifically, the report specifically aims to combat financial crimes and ensure transparency in financial transactions by containing identifying information about the company’s beneficial owners.
Employee morale can be a challenge for small businesses. One affordable way to boost your team’s spirits is by implementing an achievement awards program. Not only can this motivate your employees, but it may also provide valuable tax benefits for your business.
As the IRS has received increased funding, the agency will have more resources to conduct audits. Although the IRS audits only 1% to 2% of small business, you do not want to risk an audit. Avoid certain items that can possibly raise red flags for the IRS.
The Qualified Business Income Deduction (QBI) is a valuable tax benefit that can significantly reduce taxable income for eligible business owners. This deduction, introduced by the Tax Cuts and Jobs Act, allows many taxpayers to deduct up to 20% of their business income. However, understanding the rules and limitations is essential to maximize this opportunity. In this guide, we’ll break down everything you need to know, from eligibility requirements to calculation methods and income limits.
As a small business owner, independent contractor, or freelancer, you can take advantage of several common business deductions to lower your taxable income. Here are some deductions you may qualify for:
Estimated tax payments ensure you stay compliant with federal tax obligations if your income isn’t subject to withholdings. Whether you’re an independent contractor, freelancer, or small business owner, understanding these payments is crucial to avoid penalties. Let’s explore what triggers estimated tax payments, who must pay them, and how to meet these obligations effectively.
If you’re self-employed or a freelancer and use your car for business purposes, you may be eligible to deduct car expenses on your taxes. Understanding the deduction options available can help you save money while staying compliant with IRS regulations. Below, we outline the key methods for deducting your car expenses and provide tips for choosing the best approach for your situation.
Selling a business is a monumental financial decision with far-reaching tax implications requiring key tax considerations. Moreover, proper business sale tax planning and understanding the tax implications of selling a company are critical to maximizing your financial return. At DuPage Tax Solutions, we partner with McKarns & Associates, creators of the Well-Heeled Exit program, to help you craft a comprehensive exit plan. Their expertise, combined with our specialized tax advice for entrepreneurs, ensures you can navigate key tax considerations like capital gains on business sales effectively and optimize your proceeds.
As the year comes to an end, it’s a great time to assess your year-end tax-saving strategies. By taking proactive steps, you could significantly lower your business’s 2024 tax bill. The best strategies depend on your unique financial situation. Below are some key year-end strategies to consider:
Before filing taxes this tax season, it’s important for business owners to know what’s new for business taxes for 2023 and take advantage of the available deductions and credits. While some tax deductions are drawing back, the Inflation Reduction Act and SECURE 2.0 Act offer eligible businesses new and expanded tax credits and new deductions for retirement plans and going green.