The income tax season is approaching. Are you up to date with tax deductions permitted by the IRS? What are small business tax secrets that you should be aware of? How can you get approved for alternative small business loans easily? Read this article to get to know.
Small Business Tax Secrets and Alternative Small Business Loans
Small businesses in the US have a variety of possible deductions to save money where possible. However, small businesses usually don’t do a very good job about maximizing their legitimate tax deductions.
Tax laws undergo some changes each year. Because of the changes within your company over the past year, your eligibility for some tax deductions could completely change. Now’s a great time to take a look at the tax deductions you could be eligible for. Don’t miss the opportunity!
By the way, the Tax Cuts and Jobs Act (TCJA) was signed into law by President Trump in 2017. The Act mostly came into effect in 2018. In fact, the TCJA impacts almost every individual taxpayer to some extent. The changes significantly impact corporations and small businesses as well.
With all this in mind, look for a reputable business funding provider to turn to if you need alternative small business loans for your company. No matter you need merchant services or business funding, with a reliable and experienced provider and processor, you’ll get the best deal for your business.
Tax Cuts and Jobs Act (TCJA)
The TCJA resulted in a significant deduction for millions of taxpayers who run a pass-through business. These include sole proprietorships, S corporations, or partnerships. The new provision, under IRC § 199A, ensures up to a 20% deduction for Qualified Business Income (QBI). However, the type of business is being take into account.
So, what are some tax deductions you can still claim for your small business? Here they are:
- Salaries and wages
- Costs for contract labor
- Rent on your business property
Others may be expenses, but you can’t claim them as deductions:
- Clothing for work
- Travel to and from the office
- Gifts to customers, business associates and vendors
- Fines and penalties
Small business owners usually don’t put enough efforts in structuring their business activities to protect legitimate deductions. This refers also to creating new deductions and recycling (or double-deducting) the deductions, which business owners can use more than once to save taxes. Having the right knowledge can help you enjoy tax deductions and save more.
Author Bio: Business Funding expert, Michael Hollis prides himself in helping the backbone of America; small business owners fund their dreams. When he isn’t helping merchants, you’re more than likely to find him scuba diving the California coast or eating at one of LA’s tasty Vegan restaurants.