2022 Business Tax Highlights

Published On: June 2nd, 2022Categories: Accounting, CARES Act, Paycheck Protection Program, Small Business, Taxes

Will they or won’t they? That’s the key question on every business’s mind.

Recent history suggests Congress will pass sweeping legislation late in the tax year and have the IRS plus every small business scrambling to make sense of it. But for right now, it looks like your business can focus on the following changes.

1. Deduct Your Business Meals
Business meals are now 100% deductible. This is up from previous years.

2. Navigate New R&E Expenditure Rules
Research and experimental expenditures must be amortized over five years.

3. More 1099’s Are In Your Future
More business activity will be reported to the IRS for sellers on sites like Amazon, Etsy, and eBay.

4. Remember Key Tax Tools
Review accelerated deprecation and section 179 rules to expense capital purchases fully.

5. Adjust Your Estimated Payments
Missing payments can be costly! These payments are due:

  • April 15th
  • June 15th
  • September 15th
  • January 15th

6. Understand Your Qualified Business Deduction (QBI)
Staffing issues may alter your forecast.

7. Put Pass-Through Entity Tax (PTET) on Your Radar
Know if your state allows this tax-saving alternative. This is currently allowed in Illinois and Wisconsin, as well as in:

  • AL, AZ, AR, CA, CO, CT, GA, ID, LA, MD, MA, MN, NJ, NY, OK, OR, RI, SC

8. Navigate Work at Home Rules
Out-of-state employees can make taxes more complicated. Ensure you are withholding and paying proper payroll, worker’s compensation, and unemployment.

Whatever your situation, don’t hesitate to ask for help. Let us navigate the changes in tax law together and how it impacts your business so you can concentrate on running it.

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About the Author: Shelly Spata, CPA

Shelly Spata joined the firm in 1998, and her name went on the door in 1999. She now serves as the Managing Partner of the firm. "As a business owner myself, I understand the complexities and challenges business owners face, and I strive to add value by helping clients understand their financial statements, manage tax consequences, and clearly see the financial and tax ramifications — both positive and negative — of decisions they make," she explains. "Without good financial information, it’s like driving a car blind, but with good information, clients are able to maximize profits."