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A Beginner’s Guide to Small Business Tax Deductions

inDinero Tax Tips

Tracking expenses and claiming all of the small business tax deductions you’re eligible for can add up to substantial savings, especially for start-ups that reinvest aggressively as they scale. When the time comes, contact us about our virtual bookkeeping services.

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IRS Issues Favorable QSBS Tax Ruling for Businesses

Withum

Both limitations apply on a per-issuer and per-taxpayer basis, and while the exclusion is limited to the greater of the two rules, in practice, the $10 million rule is most often the limiting factor in start-up ventures. One important issue in determining QSBS eligibility is whether the business is a qualified trade or business (QTB).

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How To Receive A Qualified Small Business Stock Tax Exclusion On A Secondary Sale Of Stock

Withum

Raising capital is a normal part of the lifecycle of a start-up business. If you have any questions please contact a member of our business tax team. Business Tax Services. Primary and Secondary Sales of Stock. This is sometimes called a “primary” or “original” issuance of stock. Contact Us.

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I Sold My Small Business Stock After 4½ Years – Can I Qualify for the QSBS Exclusion?

Withum

Both limitations apply on a per-issuer and per-taxpayer basis, and while the rules limit the exclusion to the greater of the two rules, in practice, the $10 million rule is most often the limiting factor in start-up ventures. And the amount of money invested should be reasonable in relation to the needs of the business.

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IRS Grants a “Do Over” to a Taxpayer Engaging in a Qualified Rollover

Withum

Both of these limitations apply on a per-issuer and per-taxpayer basis, and while the exclusion is limited to the greater of the two rules, in practice, the $10 million rule is most often the limiting factor in start-up ventures. For more information on this topic, please contact a member of Withum’s Business Tax Services Team.

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SECURE Act 2.0 Would Expand Incentives for Employer Retirement Plans

Withum

Increased Credit for Small Employer Retirement Start-up Costs . Under current law, employers with no more than 100 employees are generally allowed to claim an income tax credit for retirement plan startup costs equal to 50% of the costs paid or incurred in the first credit year and each of the immediately following two taxable years.

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S Corporations Should Be Jaded That 1202 Only Applies to C Corporations

Withum

However, by limiting Section 1202 eligibility to C Corporations the larger entity classification population of S corporations cannot entice as many investors for start-up businesses, even though S corporations represent more small businesses across the United States.