Cornbelt Financial
  • Home
  • About
    • Our Team
    • Who We Serve
    • Values
  • Services
    • Tax Preparation & Planning
    • Bookkeeping, Payroll, & Consulting
    • Financial Planning
    • Investment Advising
    • Succession Planning
    • Business Valuation
  • Blog
  • FAQ
  • Login
  • Contact
  • Home
  • About
    • Our Team
    • Who We Serve
    • Values
  • Services
    • Tax Preparation & Planning
    • Bookkeeping, Payroll, & Consulting
    • Financial Planning
    • Investment Advising
    • Succession Planning
    • Business Valuation
  • Blog
  • FAQ
  • Login
  • Contact

Top 6 Small Business Tax Deductions to Boost Your Returns

12/12/2023

 
Small Business Tax Deductions
As the upcoming tax season approaches, small business owners are gearing up to make the most of available deductions and credits. Understanding and leveraging these tax benefits can significantly impact your bottom line. Here are the top six small business tax deductions to consider for your upcoming return:

1. Section 179 & Bonus Depreciation
The Section 179 deduction and Bonus Depreciation are powerful tools that allow businesses to deduct the full cost of qualifying equipment and software purchased during the tax year. This can provide immediate tax relief and incentivize investments in business assets.

2. Home Office Deduction
For entrepreneurs who operate out of a home office, the Home Office Deduction can lead to substantial tax savings. The simplified method, based on square footage, streamlines the process. However, for a more accurate deduction, consider calculating the percentage of your home used for business, along with eligible expenses like mortgage interest, utilities, property taxes, and maintenance.

3. Vehicle Expense
Tracking both total mileage and business mileage is crucial for claiming vehicle expenses. If the vehicle is used exclusively for business, it simplifies matters. For those wanting to claim depreciation, meticulous tracking of actual expenses, such as interest, lease payments, insurance, and maintenance, is necessary. Tools like MileIQ can help streamline mileage tracking.

4. Small Business Health Insurance
Small business owners paying for their health insurance or offering health insurance to employees may qualify for the Small Business Health Insurance Deduction and in some instances a Small Business Health Care Tax Credit. This deduction and/or the credit can help alleviate the financial burden of paying for health coverage, making it a valuable incentive for businesses to prioritize employee well-being.

5. Qualified Business Income Deduction
The Qualified Business Income (QBI) Deduction is designed to benefit business owners, providing a deduction of up to 20% of qualified business income. However, it's essential to note that the deduction can be phased out based on income levels and varies depending on factors like business industry, type, wages paid, and filing status. This deduction has a few methods of calculation which can create some complexities for estimating the total deduction. 

6. Employee Retirement Contributions
Contributions to employee retirement plans not only help secure the financial future of your team but can also result in tax benefits for your business. Additionally, for those implementing a new retirement plan, a tax credit is available to offset start-up costs. For Colorado employers, the Colorado SecureSavings program increases an employer's need for considering retirement plan options.
​

By strategically leveraging these small business tax deductions, you can optimize your financial position and navigate tax season with confidence. If you need additional support or have questions on your small business deductions, please reach out to your Cornbelt Financial team member today! 


Comments are closed.

    Author

    Adam Carr, MBA, EA

    Archives

    November 2024
    October 2024
    June 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    July 2023
    June 2023
    May 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    February 2016
    January 2016
    December 2015
    November 2015

    Categories

    All
    Business
    Charity
    Education
    Estate Planning
    Identity Protection
    Investments
    Life Events
    Medical
    Real Estate
    Tax Forms
    Tax Law
    Tax Planning
    Tax Reform

    RSS Feed

Client Login
Xero Partner
Gusto Partner
© COPYRIGHT Cornbelt Financial, LLC 2024. ALL RIGHTS RESERVED. | Privacy Policy

There are no warranties implied.
Cornbelt Financial, LLC (“RIA Firm”) is a registered investment advisor located in Denver, Colorado. Cornbelt Financial, LLC may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Cornbelt Financial, LLC’s website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Cornbelt Financial, LLC’s website on the internet should not be construed by any consumer and/or prospective client as Cornbelt FInancial, LLC’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by Cornbelt Financial, LLC with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Cornbelt Financial, LLC, please contact the state securities regulators for those states in which Cornbelt Financial, LLC maintains a registration filing. A copy of Cornbelt Financial, LLC’s current written disclosure statement discussing Cornbelt Financial, LLC’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from Cornbelt Financial, LLC upon written request. Cornbelt Financial, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Cornbelt Financial, LLC’s website or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
This website and information are provided for guidance and information purposes only.  Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy.  This website and information are not intended to provide investment, tax, or legal advice.
Insurance products and services are offered and sold through individually licensed and appointed insurance agents.