SEYMOUR & PERRY, LLC | BLOG

If you own an accrual-based business, you may be eligible to claim a bad debt expense deduction for accounts receivable that become partially or totally worthless during the tax year. The term “bad debt” refers to an outstanding balance that is no longer considered recoverable. If a client or customer owes you money that you have been unable to collect, it is considered a bad debt. Bad debts may also result from loans to suppliers, employees, or distributors.

Did you know that you may be able to deduct rent as a business expense? Read on for more information.

In addition to other types of expenses, certain federal, state, local, and foreign taxes also qualify as deductible business expenses. Which taxes can I deduct as business expenses? When can I deduct taxes as a business expense?

As a business owner, you have likely found that offering various employment incentives helps to attract and retain high-quality employees. Offering an employer-sponsored retirement plan is a popular incentive among many employers, with tax benefits to boot. You may choose to offer either a defined benefit plan (also known as a pension plan) or a defined contribution plan. Defined benefit plans, more commonly known as pension plans, promise a specified monetary amount upon an

Tax season is upon us once again. As you prepare to file your 2021 tax return, watch out for important dates, changes, and correspondence fr

With the new year comes yet another tax season! As you gather your 2021 tax information, be on the lookout for correspondence from the IRS. If you received advance payments of the child tax credit during 2021, you should receive a letter that will help simplify your tax return and maximize any remaining amount owed to you. The American Rescue Plan Act (ARPA) of 2021 revised and expanded the child tax credit for the 2021 tax year, increasing the maximum credit amount and aut

If you run your own business, you may be able to claim a 100% tax deduction for the salaries, wages, commissions, and bonuses paid to your employees during the year. Employers are generally able to deduct employee pay as a business expense if the pay meets the following requirements: [...]

Business interest expense includes interest paid on a loan used for business purposes. Deducting this interest reduces the cost of borrowing funds for your business. Interest paid on personal loans is not tax deductible; if a loan was used for both business and personal purposes, you may only deduct the interest paid on the portion of the loan used for your business. Business owners generally may deduct some or all interest paid or accrued during the tax year on business-r

If you are self-employed, you may be eligible to deduct certain insurance premiums on your tax return. Business owners can generally deduct premiums paid for the following types of insurance: [..]

If you're a small business owner, you know how important it is to take advantage of as many deductions as possible. One oft-overlooked [...]

Have you heard of the home office deduction? If you are self-employed and use part of your home for business purposes, you may be able to deduct a portion of your expenses associated with working from home. This tax break is available to eligible small business owners and freelancers, regardless of whether your rent or own your home.

Are you a small business owner or freelancer? You may be surprised by how many of your business expenses are considered tax-deductible. As you get ready to file your 2020 tax return, you’ll want to take advantage of every deduction available to you. Over the coming weeks, we will be breaking down tax-deductible business expenses in a multi-part blog series. Welcome to Part I: Transportation, Travel, & Meals.

Do you own a home, or are you looking to purchase one? Although homeownership will add to your tax obligations, there are also several tax benefits that come with being a homeowner, such as the Homestead Exemption and the Home Mortgage Interest Deduction. The Home Mortgage Interest Deduction is available to homebuyers who itemize deductions on their tax return and have a secured mortgage on a qualified home.

If you spent money on education-related expenses for yourself or a dependent this year, you are likely eligible for a tax benefit on your 2019 return. Continue reading for answers to common questions regarding education-related tax deductions and credits [...] If your modified adjusted gross income is $65,000 or less (or $130,000 if married filing jointly), you may claim a deduction of up to $4,000. If your MAGI is between $65,001 and $80,000, you may claim [...]

Did you know that you may be able to deduct local and state taxes on your 2019 tax return? This option is available to taxpayers who choose to itemize deductions on their tax return; if you choose to take the standard deduction, you may not deduct state or local taxes. If you are eligible to itemize state and local taxes on your return, you may only deduct taxes that were imposed on you and that you have paid during the tax year. This means that you cannot deduct taxes paid

If you’re wondering whether you can deduct medical or dental expenses on your 2019 tax return, the answer is...maybe. If you take the standard deduction on your federal tax return, you may not deduct any medical or dental expenses. If you choose to itemize your deductions instead, you may deduct eligible medical/dental expenses that exceed 7.5% of your adjusted gross income (AGI) for 2019. For tax year 2020, this threshold will increase from 7.5% to 10% of your AGI. [...]

Whether you freelance or own a small business, being self-employed comes with a host of challenges and responsibilities, including unique tax requirements. If you are considered self-employed for tax purposes, it is up to you to accurately track and report your income and make any required tax payments. Maintaining a clear understanding of your tax responsibilities will give you peace of mind during tax season and throughout the rest of the year. [...]

As the decade comes to an end, tax season draws near. If you are looking for ways to reduce your taxable income, you may be surprised at just how easy it can be to lower your tax bill. Follow these suggestions to help you save this tax season. If your last tax bill was larger than expected, you can avoid another unpleasant surprise next tax season by adjusting your withholding amount. You can change your withholding amount at any time by filing a new W-4 form with your empl

If you have recently gotten divorced from your spouse, the process of filing taxes may feel particularly daunting this year. You probably have some questions relating to filing status, the tax implications of paying or receiving child support, or other topics. To help you navigate the upcoming tax season, we’ve answered some commonly asked questions below. Armed with a bit of information and the expertise of a reliable accounting firm, you’ll breeze through the 2019 tax seaso

Did your family grow this year? Our tax tips for new parents will help ensure a smooth tax season for your family.