If you are married, you need to know three special rules that can benefit your Section 179 deductions:
1. The Section 179 business income limit includes W-2 income earned by both you and your spouse.
2. Section 179 expensing treats you and your spouse as one taxpayer.
3. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions.
When you travel to a business location where you spend the night, you are in travel status. But will the tax rules make this a business or personal night?
The rules also affect your costs during the day. When you have an overnight business travel day, you generally deduct your costs of sustaining life for the day, such as breakfast, lunch, dinner, snacks, drinks, lodging, and taxis.
The Work Opportunity Tax Credit rewards your good deeds. And now, because of new legislation, the rules are in place for longer than usual. If you need to hire workers in your business, this dollar-for-dollar reducer of your taxes is one to know about.
Suppose your business hires a member of a targeted group. In that case, you can claim the potentially lucrative federal Work Opportunity Tax Credit (WOTC) for some of the wages paid to the individual.
Usually, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave.
But this time it’s different. Because of the COVID-19 pandemic, you can qualify for the following seven benefits:
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