The Internal Revenue Service may have delayed tax season, but that doesn’t mean business owners shouldn’t begin preparing. One of the most important things when filing is deductions, as these can save a company money.
The Internal Revenue Service may have delayed tax season, but that doesn’t mean business owners shouldn’t begin preparing. One of the most important things when filing is deductions, as these can save a company money.
Business owners who run their company from home can take advantage of certain tax deductions, according to Bankrate.com. The IRS says this must be a pace devoted to the business and nothing else, however, some experts claims a home office can be part of a room. To determine how much is deductible, business ownersneed to measure the work area and divide it by the square footage of the house, and multiply that by total home-related business expenses, such as mortgage, insurance and electricity.
Auto
If a person’s business requires them to travel via car, some of these expenses can be deducted on a tax return, according to NOLO. There are two methods for claiming auto expenses:
Actual expense method: Business owners keep track of and deduct the actual business-related costs
Standard mileage rate method: A certain amount of money is deducted for each mile driven, plus any other tolls and parking fees
Interest
Many business owners use credit to finance purchases. In this case, the interest and carrying charges on the cards is fully tax-deductible. This deduction is limited to credit cards, as business owners can also deduct interest on a personal loan that was used to cover business expenses. However, it is important that records are kept to prove that these funds were used for company-related expenses, or else it may not be deductible.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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