For greater than 25 years, I’m proud to say my tax ebook for small companies has been the go-to information for homeowners and their tax advisers. The 2024 version for making ready 2023 returns in addition to tax planning for 2024 has been up to date to include inexperienced power modifications from the Inflation Discount Act, retirement plan modifications from SECURE Act 2.0, and different new legal guidelines, in addition to court docket choices and IRS pronouncements. As has been my apply, I’ve written my very own ebook evaluate to clarify the aim of the ebook, what’s new, and what’s forward. The next is an replace to earlier blogs about my ebook.
Why small enterprise homeowners want a tax ebook
For those who’re just like the overwhelming majority of small enterprise homeowners (about 90%), you utilize a CPA or different tax professional to arrange what you are promoting returns. It’s possible you’ll even work with tax specialists on particular issues, comparable to stock administration, payroll, and succession planning. That’s nice, however for small companies, regularly asking for recommendation on each matter that comes up could be too expensive.
It’s my perception that whether or not you’re simply beginning out or have been working what you are promoting for a very long time, all small enterprise homeowners should be knowledgeable about taxes and may’t rely solely on tax professionals. The rationale: homeowners, not their accountants, software program, or AI, run their companies and make choices impacted by taxes every day.
What are the tax variations for entity sorts (e.g., S company versus LLC)?
Do you have to rent workers or interact unbiased contractors?
How a lot do you have to pay your self and methods to do it?
Do you have to purchase or lease gear?
Do you have to go inexperienced, which can entitle you to particular tax deductions or credit?
What sort of financing must be used to begin or develop a enterprise?
Who ought to personal the truck—the proprietor or the corporate?
What are the results of providing your workers a selected sort of well being care association, or opting to not supply any medical protection?
What are the tax implications of assorted worker profit plans and the way do you supply them with out messing up and incurring penalties?
What are the tax and sensible implications of working a enterprise from dwelling?
What occurs should you function in a couple of state?
It’s possible you’ll get data out of your tax professional that’s useful to what you are promoting. However it’s also possible to educate your self by studying my ebook—with out incurring skilled charges. At a minimal, you’ll have the ability to ask your CPA or different tax adviser the correct questions to guard what you are promoting and lower your tax invoice.
Why tax professionals want this ebook
As a tax professional, I’m assuming you’re conscious of tax guidelines impacting shoppers which are small companies and their homeowners. The ebook goes past tax guidelines to supply a holistic method to varied issues that may assist tax advisers present the very best steerage for shoppers. For instance, it’s one factor to grasp the tax implications of debt versus fairness financing. It’s one other to understand the sensible implications of those selections of which shoppers must be made conscious.
What the ebook contains
Along with reflecting all cost-of-living changes to varied limitations and eligibility necessities for tax breaks, the 2024 version covers the tax modifications from the from the Inflation Discount Act of 2022 and SECURE Act 2.0 that influence 2023 returns, in addition to modifications from older laws that grew to become efficient in 2023. (Not all the modifications from older laws are favorable, comparable to a return in 2023 to the 50% restrict for a deduction for enterprise meals.)
The ebook additionally contains
“Wanting forward” bins all through the ebook to warn you to rule modifications efficient beginning in 2024 or later so you possibly can plan forward.
Particular matters, comparable to multistate operations, sideline companies, and particular issues for the yr during which a enterprise begins or closes, are defined in fundamental phrases.
A proof of Enterprise Possession Data Reporting that homeowners of sure forms of new or present companies should adjust to to keep away from critical penalties. Starting January 1, 2024, this rule requires submitting data on-line with the Treasury’s Monetary Crimes (FinCEN) Enforcement Community.
Whereas the ebook primarily focuses on federal earnings taxes, it contains data on federal employment and excise taxes, in addition to some state and native tax issues. It lists data returns that companies could also be required to file, plus when and the place to do it. And it discusses methods to cope with the tax professionals and the IRS.
What’s to come back
The tax legislation doesn’t stand nonetheless. There are all the time new legal guidelines, circumstances, and rulings that come up after the publication of the ebook. Congress might enact measures to influence 2023 returns or 2024 tax planning earlier than the top of this yr (final yr’s Consolidated Appropriations Act, 2023, was signed into legislation on December 29, 2023); some are saying a invoice might even come after the brand new yr. To replace readers, there’s an internet complement to clarify last-minute developments, together with any new IRS steerage and court docket choices that might influence 2023 returns and tax planning for 2024 and past. The complement is free and must be posted early February 2024 on my web site in addition to on JKLasser.com.
Interacting with readers
Every year I obtain emails from readers asking questions, suggesting future matters to incorporate, and generally mentioning errors. I’m very grateful for these communications, which helps me regularly enhance the ebook and supply worthwhile help to small enterprise homeowners. You probably have ideas on the ebook, please electronic mail me at barbara @ BigIdeasForSmallBusiness [dot] com.
Mark your calendar
Calendar-year partnerships, multi-member restricted legal responsibility corporations, and S firms should file their 2023 federal earnings tax returns by March 15, 2024. House owners of pass-through entities in addition to calendar yr C firms should file their 2023 earnings tax returns, in addition to pay their first installment of estimated taxes for 2024, by April 15, 2024 (April seventeenth for these in Maine and Massachusetts).
