16 Essential Small Business Tax Deductions Every Owner Should Know
Tax filing can seem daunting for small business owners, but it's also an opportunity to capitalize on deductions that can positively impact your company's finances. The IRS offers various tax write-offs tailored for business owners, encompassing home office expenses, vehicle costs, and even certain personal expenditures like health insurance premiums. Here's a rundown of 16 valuable small business tax deductions, ranging from familiar to lesser-known options. 1. Home Office Deduction: If you utilize part of your home for business purposes exclusively and regularly, you may qualify for deductions covering expenses related to that space, whether it's a house, condo, apartment, or even a boat. 2. Office Supplies: Business-related office supplies such as printers, scanners, and furniture are deductible if they are deemed ordinary and necessary for your industry. 3. Startup Costs: Expenses incurred during the initial phase of starting your business, including market research, advertising, and employee training, are deductible. 4. Rent: Rental payments for your business property are deductible, provided you don't own the real estate or have a conditional sales contract allowing equity buildup. 5. Software: Expenses for business-related software, subscriptions, and leases can be deducted, with the condition that they are ordinary and necessary within your industry. 6. Business Meals: While entertainment expenses are no longer deductible, certain business-related food costs, like company-wide holiday parties and client dinners, remain partially or fully deductible. 7. Travel Expenses: Costs associated with business travel, including transportation, lodging, and meals, are deductible if the travel is away from your primary workplace and meets business-related criteria. 8. Alarm Systems: Security expenses such as surveillance systems and burglar alarms are considered necessary business expenses and are deductible, provided they are reasonable and justified. 9. Business Vehicle: Expenses for vehicles used solely for business purposes, including mileage and operating costs, are deductible. For vehicles used for both personal and business purposes, only business-related expenses are eligible. 10. Professional Fees: Payments for professional services like legal fees and tax preparation are deductible business expenses, with certain exceptions. 11. Employee Salaries and Contract Labor: Wages paid to employees, including commissions and bonuses, are fully deductible, as are payments to independent contractors. 12. Business Insurance: Costs for insurance related to business operations, such as property, liability, and health insurance for self-employed individuals and their families, are deductible. 13. Internet, Phone, Utilities: Utility expenses are fully deductible if your primary workplace is not your home. Additionally, expenses for business-specific phone lines and internet services are fully deductible. 14. Bad Debt: Unrecovered debts related to business transactions, provided they meet IRS criteria, can be claimed as deductions. 15. Advertising and Marketing: Costs associated with advertising and marketing efforts aimed at attracting and retaining customers are deductible, as long as they are ordinary and necessary for your business. 16. Retirement Contributions: Contributions to tax-qualified retirement plans are deductible for small business owners, regardless of business structure. Understanding and utilizing these tax deductions can significantly benefit your small business's financial health. However, it's essential to consult with a tax professional to ensure compliance and optimize your tax strategy. Filing Small Business Taxes: The method of filing small business taxes depends on your business classification: - Sole Proprietorship: Profits and losses are reported on the owner's personal tax return using Schedule C and Schedule SE for self-employment tax. - Partnership: Profits and losses pass through to individual partners, who report them on their personal tax returns using Form 1065 and Schedule K-1. - Corporation: Corporations file Form 1120 to report income, gains, losses, and deductions, with shareholders also taxed on dividends received. Article orginally, from Yahoo Finance 16 small business tax deductions worth knowing (yahoo.com)
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Labor Day, a significant federal holiday celebrated on the first Monday in September, is a time when Americans across the country take a well-deserved break from their daily routines to relax and enjoy the final days of summer. However, beyond its role as a marker for the end of the season, Labor Day holds historical importance and serves as a tribute to the American workforce. Let's delve into the origins of Labor Day and highlight three relevant facts that underscore its significance and the benefits it brings to workers.
**1. Recognition of Workers' Efforts** Before Labor Day became a federal holiday, it was recognized by labor activists and individual states. This recognition was a crucial step toward acknowledging the laboring classes and the essential role they played in shaping the nation. It all began with municipal ordinances passed in 1885 and 1886, leading to the movement for state legislation. New York was the first state to introduce a bill, followed by Oregon, which became the first to pass a law recognizing Labor Day on February 21, 1887. Over the following years, several other states, including Colorado, Massachusetts, New Jersey, and Connecticut, adopted Labor Day as a holiday. By 1894, Labor Day was officially established as a national holiday, celebrating the hard work and dedication of American workers. **2. The Founders of Labor Day** The origins of Labor Day have long been a subject of debate, with two individuals making strong claims to the title of "Founder of Labor Day." Peter J. McGuire, the general secretary of the Brotherhood of Carpenters and Joiners and a co-founder of the American Federation of Labor, is often credited with suggesting the idea of a holiday for laborers in 1882. However, recent research indicates that Matthew Maguire, a machinist who later became the secretary of Local 344 of the International Association of Machinists, proposed the holiday in the same year while serving as the secretary of the Central Labor Union in New York. Regardless of the debate, both McGuire and Maguire attended the first Labor Day parade in New York City in 1882, marking the inception of this significant holiday. **3. A Day of Celebration and Reflection** The first Labor Day holiday was celebrated on September 5, 1882, in New York City, as planned by the Central Labor Union. It featured a street parade showcasing the strength and unity of trade and labor organizations, followed by festivities for workers and their families. Over time, Labor Day evolved to include speeches by prominent figures, emphasizing the economic and civic importance of the labor movement. In 1909, Labor Sunday was introduced to focus on the spiritual and educational aspects of the labor movement. While celebrating Labor Day, it's important to recognize the contributions of American workers in raising the nation's standard of living and driving unprecedented economic production. Furthermore, it's essential to emphasize the principles of equality and support for women in the workforce. In this spirit, Labor Day should also serve as a reminder of the ongoing efforts towards women's equality, equal pay, and the support of women in all aspects of labor and society. In conclusion, Labor Day is not just a day off work; it's a day to honor the history and achievements of the American workforce. It's a day to remember that the strength, freedom, and leadership of the nation have been shaped significantly by the dedication and hard work of countless individuals. As we celebrate this holiday, let us also renew our commitment to supporting women's equality and equal opportunities in the workplace, ensuring that the American dream remains accessible to all. Photo by Ketut Subiyanto: https://www.pexels.com/photo/focused-housewife-in-apron-cleaning-wooden-table-4353615/The Inflation Reduction Act, has produced more than 100,000 Clean Energy jobs into the economy, since August. Most of these jobs have been introduced in Georgia.
More than 100,000 clean energy jobs have been announced by companies since the passage of a bill in August aimed at slashing the nation’s climate emissions. The Inflation Reduction Act — which sets a deadline of 2030 for a 40% reduction in greenhouse gasses from 2005 levels — earmarked $90 billion in U.S. investments for such ventures. Georgia has so far attracted the most funding, according to nonprofit advocacy group Climate Power, at $15 billion. New businesses including a solar panel factory and battery plants for Hyundai and Kia vehicles are expected to create 17,000 jobs in the state. Learn More www.linkedin.com/news/story/green-jobs-top-100k-since-august-5125937/. Edited by Cynthia Crosby The Salton Sea, is in a climate crisis, the US Government is spending funds to support restoration of the sea with funds from the California Inflation Act. The US Government will spend $250 million to assist in the mitigation of the environmental effects in California's Salton Sea. The Salton Sea is an inland lake in California, that's reservoir is a agricultural run off and wastewater, due to climate exclamation into the sea. The Salton Sea has been shrinking, and the shoreline has selenium and DDT espousing the atmosphere with its positioning effects. Dust has entered the surrounding community creating pollution and respiratory conditions in one of California's pores and most environmentally burdened regions. The Salton Sea is connected to the Colorado far River, who is responsible for the future of the Salton Sea is a concern, the US Government is spending 250 million to clean up the Salton River. Many farmers in the region grow vegetables, and have reduced their water use, as a result of the drought which is accelerating the shrinkage of the Salton Sea. Local authorities agreed to sea forth in the mitigation and reduction in water drawn from the Colorado River which is draining. California Natural Resources secretary, Wade Crowfoot. states the California Natural Resources board is in agreement, the Salton Sea can not be left unrestricted. The 25o million of the recently passed Inflation Reduction Act, which set aside 4bn to staff off the worst effects of drought across the US West. Most of the Imperial irrigation district and Coachload Valley water district making good on their commitment to reduce their use of river water, they all agreed to cut back on their usage for payment as part of a new federal program. The 250 millon will go to speed of existing state projects designed to lower the negative environmental impact of drying lake bed. The state has committed to 583 million to projects = at the sea, including dust suppression and habitat restoration. One project underway aims to create wetlands and ponds that will limit dust form blowing into the air while creating safe space for fish and birds. according to the state. Local groups of environmental the concerned have been pushing for funds in urgency to address the Salton Sea Crisis. condition. In Calipatria, Brawley, Westmoreland, and other towns around the lake, adult asthma rates are around the highest in the state. Farm Workers and outdoor workers, in the region are exposed not only to Salton Sea dust put also to particle pollution from pesticides and trucks. The Salton Sea was formed in 1905 when the Colorado River breached an irrigation channel and filled up an ancient basin in the desert. The Salton Sea [became a resort destination,, attracting celebrities, like Bing Crosby, and President Dwight Eisenhower, and singer Frank Sinatra., who golf[ed nearby. By the 1990s the sea began shrinking, tens of thousands of migratory[ birds starved, or where poisoned. The salty fertilizer and pesticide filled the sea regular emitting anxious stretch on hot and days. Local Senators and Legislators spoke that infusing funds to address, this will help us to address the public health and environmental disasters, Senator Alex Padilla spoke. This is the most meaningful federal investment at the Salton Sea in history. This article is from an article in the Guardian, Fuel Change Initiative would like to express support for the restoration of the Salton Sea, by sharing this information with audiences. Fuel Change supports climate change initiatives in support of environmental health, sustainability, and environmental protection of the earth, land, and its atmosphere, in promotion of health to civilians. |
AuthorCynthia Crosby is the Founder of Fuel Change Non-profit. Archives
February 2024
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