Business Operations – Bregante+Company LLP

Planning to Deduct for Losses this Tax Season? Be Sure to Read the Fine Print.

Deducting losses is a high-priority item for taxpayers in the highest marginal income tax bracket. The topic will be especially relevant during the 2022 tax compliance season because of recent declines in the stock market and a challenging overall business environment.

With that said, you shouldn’t assume that every business operating loss or capital loss on investments will lead to a 1:1 deduction on your tax return. There are significant limitations and qualifications surrounding these losses, so it’s critical to understand the details.

In this article, we provide a primer on some of the loss limitations that are most likely to affect high income taxpayers during the upcoming tax filing season.

Not All Business Losses Are Tax Deductible

Rising interest rates and other effects of surging inflation have created a challenging environment across industries. […]

By BCo Author|March 15th, 2023|Categories: Business Operations, Business Tax, IRS|Comments Off

The IRS Standard Mileage Rate Increases Continue in 2023

With gas prices reaching record highs during 2022, the IRS adjusted mileage rates to provide some relief for miles driven for the following purposes: business, medical, and/or charity.

At the launch of 2023, the IRS increased the standard mileage rates as follows:

Business miles – From 62.5 cents per mile (effective 7/1/22) to 65.5 cents per business mile driven.

The following to note, but remains unchanged from the IRS update made effective 7/1/22:

Medical – 22 cents per mile driven for medical or moving purposes (moving purposes only for qualified active-duty members of the Armed Forces)
Charitable – 14 cents per mile driven in service of charitable organizations

- Reminders to our clients:
  - There is always the option of calculating actual costs rather than using the standard mileage rates.
  - Leased […]

By Mike Ruiz Murillo|January 11th, 2023|Categories: Announcements, Business Operations, IRS|Comments Off

Three Ways to Deduct the Cost of Business Property

Under current law, taxpayers have a variety of options for deducting some or all of the cost of property used in business rather than depreciating it over a period of years. Here’s a quick overview of three of them:

De Minimis Expensing Safe Harbor

Taxpayers with “applicable financial statements” (such as a certified audited financial statement) can deduct up to $5,000 per invoice or item for certain tangible property costs to the extent they deduct them for financial reporting or bookkeeping purposes. Those without applicable financial statements can deduct up to $2,500. Certain exceptions apply.

This safe harbor avoids the need to determine whether low-cost items are deductible or must be capitalized, as well as the need to depreciate large numbers of small-dollar capital asset purchases. It does not, however, preclude the deduction […]

By BCo Author|July 8th, 2022|Categories: Business Operations, Business Tax|Comments Off

Owning Investment Real Estate through Single Member LLCs

Over the years, Single Member LLCs (SMLLCs) have grown in popularity among investors and business owners because under the so-called check-the-box regulations, you can generally ignore the existence of a SMLLC for federal tax purposes. When you choose to not treat a SMLLC as a corporation for federal income tax purposes, the entity is disregarded (i.e., it’s a “nothing” for federal income tax purposes). The federal income tax treatment of a disregarded SMLLC is relatively simple because its activities are considered to be conducted directly by the SMLLC’s sole member (owner). For instance, when an individual uses a disregarded SMLLC to own rental real estate, the rental activity is reported on Schedule E of Form 1040. There is no need to file a separate federal income tax return for the […]

By Shannon McKelvey|July 1st, 2022|Categories: BCo Community News, Business Operations, Business Tax|Comments Off

Starting a business and not sure if it’s worth consulting with a professional?

It’s worth it!

Bregante + Company LLP is solidly grounded in the fundamentals of traditional tax and accounting services. However, we believe that our clients especially value our service partnership approach to advising them, and in particular our creative approach to helping protect their interests during certain critical transactions that call for our expertise.

At B+Co, we are able to consult with our clients during the entire life cycle of their businesses; from entity selection and formation (LLC, Corp, Non-Profit), to retirement and business succession planning, and everything in between. Whether a client has one small business or multiple entities involved in diverse business operations, we find that helping our clients focus on long-term considerations and goals results in the […]

By BCo Author|June 8th, 2021|Categories: BCo Community News, Business Operations, Business Tax|Comments Off