Abacus CPA hopes your month is getting off to a smooth start! We recently attended the National Small Business Expo and enjoyed visiting businesses of similar size. Whether you are virtually networking or focused on the development of new strategies, we hope your business is able to operate at the fullest capacity possible during this crisis. Our goal is to supply you with the resources to do so. Digital focus shifting and stabilization are the themes for this month. The August newsletter will provide you with the tips you need to expand your business and avoid stagnation. Abacus CPA has prepared insight for small business owners who are new to digital practices, and for those who already had a head start.
What digital practices do you plan to incorporate into your business? Have you updated your budget to accommodate new strategies? Are you informing your employees of news regarding your industry and the pandemic? How are you coping with these changes?
If you've asked yourself any of these questions, here are articles that
Chat With My CPA is a webinar series where Abacus CPA, LLC
is Taking the Fear Out of Finance.
Every webinar focuses on a different topic to help both the individual and the business secure financial success. Earlier this month, we tapped into your talents and highlighted ways to monetize them. Next month, we are focusing on Fashion & Finance. We're helping boutique and retail owners optimize their bottom line!!!
Tax Write-offs for Individuals & Small Business Owners:
A healthy tax strategy involves claiming legitimate deductions. Companies have the potential to pay less taxes by legally writing off certain expenses. In addition, it is essential to plan ahead estimating payments for upcoming quarterly taxes. This list covers a few tax write-offs to help you with your projections:
Medical Expenses: Unreimbursed medical expenses that are more than 7.5% of your adjusted gross income for the tax year can be deducted.
Student Loan Interest: If you have paid interest on your student loans, you can deduct up to $2,500 from your taxable income.
Lifetime Learning: As a student, you can claim 20% of the first $10,000 you paid toward tuition and fees, or a maximum of $2,000.The Lifetime Learning Credit doesn’t count living expenses or transportation as eligible expenses. You can claim books or supplies needed for coursework.
Residential Energy: If applicable, you are eligible to deduct 30% of the installation cost of solar energy systems, including solar water heaters and solar panels.
Vehicle Expenses: Most businesses use a car, truck, or van. If you are using these vehicles for business purposes, be sure to have records of the usage to report later. For gasoline, oil changes, and other specific costs, it is convenient to use the standard milage rate set by the IRS each year.
Salaries and Wages: Salaries, wages, bonuses, commissions, and taxable fringe benefits to employees can all be claimed as deductions.
Contract Labor: Costs occurred from contract labor is deductible. Whether you are working with an independent contractor or freelancer, the expenses used to meet your labor needs can be written off.
Supplies: When buying items for your business, keep a running record of all receipts. This includes cleaning supplies and postage.
Rent & Utilities: Renting spaces, electricity, and mobile phone charges are fully deductible. If you conduct your business in an office, boutique, storefront, factory, or another type of facility, be sure to include your rent expenses.
Insurance: The costs of your business owner’s insurance policy, malpractice coverage, flood insurance on business premises, cyber liability coverage, and business continuation insurance are all fully deductible business expenses.
Legal and Accounting Fees: You can fully deduct the costs of a lawyer reviewing a contract or lease. For accounting, all services used are fully deductible- even tax return preparation during the calendar year.
August 20: The IRS 2020 Nationwide Tax Forum will be held virtually through a live-streamed webinar. Those who register will earn up to 30 CE credits for one price. Register today at IRSTaxForum.com.
The filing date has passed, but Abacus is still here for you. If you applied for an extension, need assistance correcting a return, or want to plan ahead for the next tax season, schedule a consultation with us today!