Welcome to our ‘Tax Strategy for Small Business’ section, where we offer a wealth of knowledge and insights on various aspects of business taxation. Our team of experienced CPAs and financial experts regularly share articles to help you navigate the complex world of business taxes. Whether you’re seeking tips for deductions, updates on tax regulations, or strategies for tax optimization, you’ll find valuable information here. Stay informed and make informed tax decisions with Bearden, Stroup & Associates, CPAs.
You bought a piece of equipment online, the seller didn’t charge sales tax, and you figured you caught a break. You didn’t. You may still owe the tax. It’s called use tax, and it’s one of the most common reasons an Alabama small business gets hit with a surprise bill during an audit. Here’s what it is, when you owe it, and […]
Why Your City Wants to See Your Equipment Receipts Read More »
The catered lunch you buy your crew on a long install day has earned you a tax deduction for years. Starting in 2026, that same lunch may be worth nothing on your return. A tax change is coming that affects how businesses deduct meals, snacks, and food provided to employees. Some expenses that were 50%
Your Crew’s Lunch Just Lost Its Tax Deduction Read More »
A lot of small business owners assume that if they’re already paying rent on an outside space, the home office deduction is off the table. That assumption is costing them money. The IRS doesn’t limit you to one place of business. What they care about is something more specific, and once you understand the rule, you may realize you’ve been leaving a legitimate
Your Rented Space Doesn’t Kill Your Home Office Deduction Read More »
Many business owners are surprised to learn that a basic SUV, sedan, or crossover can run into the same depreciation limits as a luxury car. Even though “luxury auto depreciation limits,” sounds like it would apply only to high-end cars like BMWs, Mercedes, or Range Rovers. That is not really the case. These limits can apply to a perfectly
The Luxury Auto Tax Trap for Regular Business Vehicles Read More »
If you are an S corporation owner, this question matters more than most people realize. Reasonable compensation is the amount a business owner-employee should be paid for the work they actually perform. In plain English, it is what you would have to pay someone else to do your job under similar facts and circumstances. This is
What Is Reasonable Compensation? Read More »
Real estate activities fall into several different tax categories. It could be classified as a business or an investment, and that difference can change your tax bill. Rental Properties Rental real estate is sometimes treated like a business and sometimes treated like an investment activity, depending on what aspect of the tax law you want to dive
Real Estate: Business or Investment? Read More »
When a taxpayer owns a house where a relative resides, they navigate tax considerations related to rent, expense reimbursement, and impact on deductions. Let’s explore three common approaches based on the document provided and relevant IRS guidelines. 1. Charging Rent at Fair Market Value Charging fair market rent ensures the property is treated as a rental for tax purposes. This
How Should a Taxpayer Handle Owning a House Occupied by a Relative? Read More »
Many business owners believe that leaving money in the business checking account can delay or even eliminate taxes on that income. At first glance, that feels logical. If you do not take the money out, it seems like it should not count as income. Unfortunately, that is not how the tax rules work. This misunderstanding is extremely common and often
Does Money Left in the Business Bank Account Impact Taxes? It’s Complicated Read More »
When does side income become a business? Many people are surprised to learn they already have a business for tax purposes — even if they never formed an LLC or thought of themselves as “business owners.” The IRS uses a very broad definition of a business for tax purposes. Understanding whether what you’re doing counts as a business can dramatically affect your taxes. It determines whether you can
Surprise! You Just Started a Business Read More »
Electing S corporation status can feel like a smart tax move, and in many cases, it is. You may reduce self-employment taxes and keep more of what you earn. Those savings come with real responsibilities though: running payroll, filing Form 1120-S, tracking shareholder basis, and following strict IRS rules. Before you file Form 2553, make sure
S Corporation Election: Tax Savings with Strings Attached Read More »
