Business Tax Articles

For 2025, many business tax limits have increased due to inflation adjustments. Key changes include higher limits for Section 179 expensing, standard mileage rates, and various retirement plan contributions.

In 2025, both new and used heavy SUVs, pickups, and vans can offer significant first-year depreciation write-offs if used more than 50% for business purposes. Additionally, setting up a home office can further enhance tax savings by allowing you to qualify for home office deductions, making it easier to pass the over-50%-business-use test for your heavy vehicle.

Section 1231 of the Internal Revenue Code governs the tax treatment of gains and losses from the sale of specific business properties. Gains from Section 1231 assets can be treated as long-term capital gains, while losses can be treated as ordinary losses, providing favorable tax outcomes. However, the nonrecaptured Section 1231 loss rule can affect the timing and treatment of these gains and losses.

The IRS in the past year has continued to ramp up its scrutiny of partnerships’ tax positions, including several pieces of new guidance taking a multiprong approach to partnership “basis shifting” transactions that the agency views as having the potential for abuse. At the same time, IRS is dedicating new funding and resources to examining partnerships. 

Operating as a C corporation offers benefits such as limited liability protection and the ability to raise capital through multiple classes of stock. However, it also comes with drawbacks like double taxation and the need to comply with various state-mandated formalities. Overall, it's important to weigh these pros and cons to determine if a C corporation is the right choice for your business.

Understanding how to deduct local transportation costs can significantly reduce your small business’s tax burden. While commuting costs aren’t deductible, travel expenses for business purposes, such as trips from your office to a client’s location, are deductible. Proper recordkeeping is essential to ensure these deductions are accurately claimed.

Corporations are responsible for a wide range of distinct tax regulations and challenges. It's important to consider key developments as corporations wrap up the 2024 tax year and move into 2025.

Health Savings Accounts (HSAs) offer small business owners a tax-advantaged way to manage health care costs for themselves and their employees. With updated contribution limits for 2025, HSAs provide significant tax benefits, including deductible contributions, tax-free earnings, and tax-free distributions for qualified medical expenses. Employers can also benefit from payroll tax savings on HSA contributions.

Business-related meal deductions can still offer valuable tax savings, but recent law changes have tightened what qualifies. Generally, meals are 50% deductible if they meet specific criteria, while certain exceptions allow for 100% deductions. Contact us to clarify the rules and optimize your deductions.

This guide identifies tax strategies and considers how they may be influenced by recent administrative guidance and potential legislative changes that remain under consideration. A taxpayer’s tax accounting methods determine when income is recognized, and costs are deducted for income tax purposes.