Startup Costs: What You Need to Know
Startup costs follow different rules than ongoing business expenses. The IRS provides clear guidelines for deducting these startup costs, and understanding them can help you maximize your tax benefits.
Business Interest Expense: Is it Deductible?
For many companies, interest expenses constitute a significant portion of their operating costs, which is why the deduction of these expenses is a valuable tax benefit for businesses. Understanding this deduction can help business owners manage their finances more effectively and optimize their tax strategy.
S Corp and LLC: Pros and Cons
S Corporations (S Corps) and Limited Liability Companies (LLCs) are two popular business structures that have pros and cons. Choosing the right entity depends on your specific tax situation and business goals.
Tighter deductions and tougher reporting
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.