Business Taxes

The American Rescue Plan Act provides tax relief to small business owners and their employees. Here are five of the tax changes:

The Internal Revenue Service has announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For those of you that keep a mileage log, you need two totals to figure your taxes. One total business miles for the first six months of the year and one total business miles for the last six months of the year.

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

From collecting stamps and woodworking to crafting and quilting, people have all kinds of hobbies – and most of these hobbies will never turn a profit. For hobbies that do earn income, people should know that they must report it on their tax return. They should also be mindful that their hobby might be a business.

A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.

I have been saying that the IRS has been itching to go after small business. Well, the Congressional Budget Office (CBO) informed lawmakers that audits of taxpayers making under $400,000 accounts for about $20 billion in revenue for the Inflation 'Increasing' Act - in spite of their lies that nobody making under $400,000 would see any harm from this bill.

There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It's also important to notify the IRS of their plans.

This tax court ruling shows how important it is you have a tax advisor that is well versed in business returns.

In their effort to control more of our lives, the Biden administration has chosen to change the rules on determining if people are considered employees or self-employed - and it could cost businesses massive amounts of money that have been employing people as independent contractors.

One of the most common questions I get from people opening a business for the first time is, 'How do I deduct all of the many expenses incurred before the business actually opens its doors?' Most of these can be handled as either start-up expenses or organizational expenses. You can think of organization expenses as creating the paperwork part of a business and start-up expenses as setting up the physical structure of a business.