Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
The purpose of this article is to get the IRS to owe you money.
Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.
This article gives you six powerful business tax deduction strategies that you can easily understand and implement before the end of 2021.
1. Prepay Expenses Using the IRS Safe Harbor
You just have to thank the IRS for its tax-deduction safe harbors.
IRS regulations ...
In the past, Uncle Sam made no special effort to help you as a self-employed individual. For example, you had no “safety net” that existed for employees who lost their jobs during the COVID-19 Pandemic. You were just supposed to "Hang On" until things got better.
But this time, with COVID-19, it’s different...
If you report your business income as Self-Employed on Schedule C of your Form 1040 or any of the following:
Receive 1099 income
Operate your business as a single-member LLC and did not elect corporate status
Operate a retail establishment or professional practice as a sole proprietor, or
Report your W-2 income on a ...