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.
The rules for startup costs differ from expenses for operating your business. The IRS specifies what startup costs are, how much you can deduct in the first year, when they are deductible, and how they are deductible if your business does not start.
Typically, business interest expenses are deductible when the loan is used for business operations. However, there are limits to how much businesses can deduct if they exceed a certain income threshold.
Traditional LLCs and series LLCs have advantages for rentals, but the right LLC depends on your risk tolerance. Also, an S Corp election provides the same protections as an LLC, but it may not be advantageous for a rental.
S Corporations (S Corps) and Limited Liability Companies (LLCs) are popular business entities because of their pros, but they also bring along their cons. The right business entity depends on your specific tax situation.
Presently, tighter deductions and tougher reporting implemented in two legislations might affect your taxes. The American Rescue Plan of 2021 implemented lower thresholds for reporting third-party transactions. The Tax Cuts and Jobs Act (TCJA) of 2017 tightened and eliminated significant deductions for your business. For this reason, here we share the new rules that may affect your 2022 and 2023 taxes.