Marketing and advertising expenses are generally tax-deductible for businesses, provided they are ordinary and necessary. Here’s a detailed breakdown of marketing-related tax deductions: 1. Advertising and Promotions You can deduct costs for: Print ads (magazines, newspapers). Online ads (Google Ads, social media campaigns). TV and radio spots. Billboards and outdoor signage. Flyers, brochures, and business cards.…
The real estate professional tax status is a designation under U.S. tax law that allows qualifying individuals to treat rental real estate activities as non-passive for tax purposes. This status can provide significant tax benefits, such as the ability to fully deduct rental losses against other sources of income, which is generally restricted for non-real estate professionals. Requirements for…
Effective self-employment tax planning can help minimize your tax burden and keep you compliant with tax laws. Here’s a guide to help you manage self-employment taxes more efficiently: 1. Understand Your Tax Obligations Self-employment tax (15.3%): Includes Social Security (12.4%) and Medicare (2.9%). This tax is IN ADDITION to federal INCOME tax and often overlooked by…
Business budgeting is essential for financial planning and decision-making. It helps businesses allocate resources, manage expenses, and set measurable financial goals. Here’s a step-by-step guide to business budgeting: 1. Set Clear Business Goals Identify your short-term and long-term goals (e.g., increase revenue, expand operations, reduce costs). Align the budget with these objectives. 2. Assess Revenue…
Filing a 1099-NEC (Nonemployee Compensation) form for the 2024 tax year involves several steps and requirements. Who Needs to File a 1099-NEC? You must file a 1099-NEC if you paid $600 or more to a nonemployee (e.g., an independent contractor) for services related to your trade or business during the tax year. 1. Form Overview:…
The IRS has announced the standard mileage rates for 2025, effective January 1, 2025: Business Use: 70 cents per mile, an increase of 3 cents from 2024. Medical or Moving Purposes: 21 cents per mile, unchanged from 2024. Charitable Service: 14 cents per mile, unchanged from 2024. These rates apply to the use of…
Tax law allows businesses and self-employed individuals to deduct a portion of certain meal expenses from their taxable income. This deduction is relevant when meals are purchased for business purposes, such as meeting with clients, employee meals, or meals during business travel. 1. Qualifying Business Meals To qualify for the deduction, the meal must meet…
Winter Accounting & Advising LLC (WAA) can handle the administration of your company’s Beneficial Ownership Information (BOI) report. This is a required report for most business entities in the U.S., including most LLCs. Businesses that were created prior to 2024 are required to file this report by January 1, 2025. See below if your business…