by Bill Houston | Jan 28, 2022 | Business Deductions
One of the best reasons to start a new business is to be able to move some of your personal expenses under your business umbrella and make them deductible. This is not an article about tax evasion. This is about using the tax code to your advantage to minimize the...
by Bill Houston | Jan 22, 2022 | Business Deductions
Business deductions are just that. They are expenses incurred in the operation of your business. The IRS says they have to be ‘ordinary and necessary’ for your business. The IRS doesn’t define ‘ordinary and necessary’ well but common...
by Bill Houston | Jan 3, 2022 | Business Deductions, General Tax Info
If the IRS determines that your business or investment activity is not conducted as a for-profit business, IRS Section 183 limits deductions to the amount of income from the activity. They will classify your activity as a hobby, and unlike a business, hobby losses...
by Bill Houston | Dec 8, 2020 | Business Deductions, Reduce Your Taxes
If you earn your living as a contractor, you pay self-employment taxes on the profit your company makes. You could be a real estate agent, a builder, a car salesman, whatever. As a contractor, if you don’t pay estimated taxes throughout the year, you’re...
by Bill Houston | Dec 6, 2020 | Business Deductions
If your business has less than 50 employees, it is a good idea to have a medical plan of some sort in place in your business. Most of the tax rules that apply to medical plans are straight forward when you have fewer than 50 employees. We will describe 6 opportunities...
by Bill Houston | Dec 3, 2020 | Business Deductions
This article gives you 7 tax deduction strategies that you can easily implement before the end of 2020. Strategy 1 IRS regs contain a safe-harbor rule that allows cash basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance. That means your...
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