Digital Tax Guide for Small Business Owners
Tax laws and their intricacies can often feel like a maze, especially for small business owners. With the whirlwind of changes post-COVID-19 and the digital shift of the IRS, it’s crucial to stay informed. Let’s embark on a journey to understand these changes and how they impact your business. Let us present to you a Digital Tax Guide for Small Business Owners
Understanding the Tax Maze
The past few years have witnessed significant tax law alterations, from the TCJA of 2017 to the Inflation Reduction Act of 2022. These changes present both challenges and opportunities. As we step into 2023, it’s essential to be aware of expiring provisions, new rules, and the digital evolution of the IRS.
Decoding Net Operating Loss
When business deductions surpass gross income, net operating losses arise. Recent changes have adjusted how these losses can be carried back and forward, impacting how businesses offset their taxable income.
The Dynamics of Bonus Depreciation
Bonus depreciation allows businesses to write off a percentage of the purchase price of qualified assets. However, this benefit is set to phase out, with reductions starting post-2022.
Revisiting Tax Credits
The CARES Act introduced the Employee Retention Credit to support businesses during the pandemic’s economic challenges. While this credit expired at the end of 2021, eligible businesses can still claim it retroactively.
Planning for the Future: Estate Exemption Updates
The pandemic underscored the importance of succession tax planning. Adjustments in estate tax annual exclusions and gift tax exemptions offer opportunities for strategic planning.
Embracing the Digital IRS
The IRS is undergoing a digital transformation, aiming to provide a more efficient and secure interaction platform for taxpayers. From real-time responses to electronic filings, the future of tax interactions is digital.
The tax landscape is ever-evolving, demanding adaptability and foresight from small business owners. As we navigate these changes, the expertise of Rick S. Vourganas, CPA, is here to guide you. Let’s embrace the opportunities and tackle the challenges together. Reach out for personalized guidance tailored to your business needs. Digital Tax Guide for Small Business Owners