April 19, 2024

6 Uncommon & Complex Tax Write Offs & Business Tax Deductions

Discover the key tax deductions your business can leverage in our comprehensive guide.

6 Uncommon & Complex Tax Write Offs & Business Tax Deductions

What are some large business tax deductions that aren't that well known?  What are some advanced ways you can reduce taxes or what are some large tax write offs that business owners might not know about?

Well, we're going to quickly share some ideas for tax write offs that might be a little deeper and more advanced than what your typical tax accountant is going to talk about.

If your business needs aggressive tax planning, we would love to connect.

We're a Business CPA, Accounting, BookkeepingBusiness Tax company out of Des Moines, that helps small businesses across the country.

What do we focus on?

Handling all your accounting, bookkeeping & tax, with a laser focus on providing year-round, aggressive tax reduction planning.

Our clients never overpay in tax.

So, here are six other business tax deductions you might want to know about.

Before We Unbox the Complex Tax Write Offs:

We always make sure that you're implementing our fundamentals of tax reduction:

1 - Maximizing an S-Corp and your Reasonable Salary.

2 - Utilizing Benefits and Retirement Plans for Tax Reduction

3 - Hiring Your Family & Kids

4 - Investing in Real Estate & Using Depreciation and Cost Segregations

5 - Equipment Purchase Planning & Investing in Business Growth

We always make sure the basics are covered before we move onto these more complex tax write offs.

Major Business Tax Write Off #1 Qualified Business Income Deduction

Businesses can deduct up to 20% of their qualified business income. This deduction applies to many types of businesses including sole proprietorships, partnerships, S corporations, and some trusts and estates. For more details, see the IRS website.

Caution About the QBI: The rules for calculating and claiming the Qualified Business Income Deduction can be complex, especially determining what constitutes qualified business income. The phase-out thresholds based on income levels and the type of business can also affect eligibility.

Consultation About the QBI: Discuss with your accountant how your specific business type and income level affect your eligibility and how to maximize this deduction effectively.

Major Business Tax Write Off #2 Business Losses Limitation

The Tax Cuts and Jobs Act limits business losses to $250,000 (or $500,000 for joint filings), with disallowed losses carried forward as a net operating loss. More information can be found on the IRS website.

Caution Concerning Business Loss Limitation: There are strict limits on how much business loss can be used to offset income. Excess losses must be treated as a net operating loss and carried forward to future tax years, which could impact financial planning.

Consultation: Ensure you understand how to properly apply these loss limitations and the implications for carrying losses forward, which may require strategic tax planning over multiple years.

Major Business Tax Write Off #3 Work Opportunity Tax Credit (WOTC)

Available for employers hiring individuals from certain target groups facing employment barriers. Detailed guidance is available on the IRS website.

Caution About the WOTC: This credit has eligibility criteria based on the type of employees hired and requires timely filing of specific forms shortly after the eligible worker begins employment.

Consultation: Verify the eligibility categories of your employees and discuss the timing and documentation required to claim this credit.

Major Business Tax Write Off #4 Employer-Provided Childcare Credit

Businesses providing childcare benefits can claim a tax credit. Further details are available on the IRS website.

Caution About the Employer-Provided Childcare Credit: To qualify for this credit, specific expenditures on childcare facilities or services must meet IRS requirements, and there are caps on the amount of the credit.

Consultation: An accountant can help determine which expenses qualify and ensure that the calculation and claim processes are handled correctly.

Major Business Tax Write Off #5 Energy Efficient Commercial Buildings Deduction

Offers a deduction for building owners who improve the energy efficiency of their buildings by at least 25%. More information can be found on the IRS website.

Caution About This Deduction: The deduction requires that specific energy efficiency improvements exceed certain percentage reductions in energy costs, which must be certified by a qualified individual.

Consultation: Consult a professional to ensure that improvements meet energy efficiency requirements and to manage the certification process.

Major Business Tax Write Off #6 Advanced Energy Project Credit

A 30% tax credit for qualified investments in advanced energy projects that meet certain requirements. Learn more at the IRS website.

Caution About This: This credit is only available for specific types of energy projects approved by the Department of Energy, and it involves meeting detailed requirements including prevailing wage and apprenticeship requirements for the full credit rate.

Consultation: Discuss with your accountant the project’s eligibility, application process for the Department of Energy's approval, and compliance with wage requirements.

Schedule a Tax & Accounting Analysis Now

Step 1 - Fill out the form below.
Step 2 - Select a time.
Step 3 - Provide documents.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Free Resources

FREE DOWNLOAD

12 Insanely Valuable Tax & Growth Hacks for Pressure Washers

Download Now
FREE DOWNLOAD

Power Washing Daily Profitability Tracker

Download Now
FREE DOWNLOAD

5 Ways to Reduce Taxes for Contractors & Construction Businesses

Download Now

All Articles

Contractors
June 10, 2024

Top Bookkeeping Tips for Building Contractors

Our CPAs offer bookkeeping tips to building contractors to ensure their books are accurate.

Read Article →
May 10, 2024

Don't Wait Until Next Tax Day! Get Year-Round Tax Tips from Your Des Moines Accountant

With Tax Day behind us, it's essential to keep working with your Des Moines tax accountant all year to keep your business growing.

Read Article →
April 19, 2024

10 Amazing Tax Write-Offs Every Small Business Owner Needs to Know About

We wanted to share with you 10 great tax write offs for your small business so you can be pro-active with your strategy and decision making.

Read Article →
April 19, 2024

What are the best small business tax deductions?

In this post we go through the best small business tax deductions that you can use to keep more money in your pocket.

Read Article →
April 19, 2024

6 Uncommon & Complex Tax Write Offs & Business Tax Deductions

Discover the key tax deductions your business can leverage in our comprehensive guide.

Read Article →
April 19, 2024

Mastering the Basics: Understanding Debits and Credits in Bookkeeping

Unlock the fundamental principles of debits and credits with Performance Financial. Learn how these core concepts form the backbone of accurate bookkeeping and financial management.

Read Article →
April 19, 2024

Unlocking Financial Efficiency: Essential Bookkeeping Services for Your Business

Explore our in-depth guide to bookkeeping services offered by Performance Financial Tax & Accounting.

Read Article →
April 8, 2024

How to use Facebook Groups for Marketing Your Small Business

Melissa from IdealRev shares some tips on how to use Facebook Groups to market your small business to people located near your business.

Read Article →
April 8, 2024

5 Best Small Business Tax Accounting Firms in Cedar Rapids, IA

Check out the top Cedar Rapids, IA tax accounting firms.

Read Article →
April 8, 2024

Best Outsourced Accounting Firms in Dubuque, IA

Find out which Dubuque, IA accounting firms are the best!

Read Article →
April 8, 2024

7 Top Accounting Firms Near Sioux City, IA

Check out the top outsourced accounting firms near Sioux City, IA.

Read Article →
January 29, 2024

How to Start a Construction Company in Iowa: Essential Steps and Legal Requirements

Discover the essential steps and legal requirements for starting a construction company in Iowa. Get expert insights and resources for a successful launch in the construction industry.

Read Article →
January 25, 2024

Need More Omaha Clients? Use These Local SEO Tips for Your Small Business

Use these local SEO tips to attract more Omaha customers.

Read Article →
November 15, 2023

10 Des Moines Remodeler Fails Limiting Their Business Growth

Look at the top 10 mistakes Des Moines remodelers make that prevent their business from growing.

Read Article →
Contractors
October 3, 2023

How Landscaping Contractors Can Secure Large Exterior Design Contracts

We are Performance Financial, and we help landscaping contractors with their finances, and we have asked our clients about how they can secure large exterior design contracts, and we thought we would write a blog explaining how they do.

Read Article →
October 3, 2023

PARO.ai Reviews vs. Performance Financial Tax & Accounting

PARO.AI Reviews vs. Performance Financial CPA Tax & Accounting for Small Business Bookkeeping & Tax

Read Article →
September 11, 2023

Landscaper Tax Accountants: 8 Best CPA’s and Tax Accountants for Landscapers & Landscaping Contractors

Top 8 Accounting Services for Landscaping Contractors & Landscaping Companies

Read Article →
June 21, 2023

12 Super-Common Bookkeeping & Accounting Mistakes Small Business Make 2023

This blog post is a comprehensive guide detailing the twelve most common mistakes small businesses make in their bookkeeping and accounting processes in 2023, providing actionable tips for avoiding these mistakes.

Read Article →
Contractors
September 11, 2023

11 Best Bookkeeping Services for Contractors & Construction Companies

Tops Bookkeeping Services for Contractors & Construction Companies

Read Article →
May 25, 2023

9 Common Bookkeeping & Accounting Errors Small Businesses Should Avoid

From not recognizing revenue and expenses when they are earned to failing to keep accurate records, learn what mistakes you should look out for, for your Altoona IA small business.

Read Article →
March 30, 2023

The Best Photo Spots near Altoona, Iowa for Instagram-Worthy Shots

As a local expert, we explore the best photo shots near Altoona, Iowa, perfect for capturing Instagram-worthy shots. From historic landmarks to beautiful parks and unique murals, we highlight the top locations for taking stunning photos in Altoona.

Read Article →
March 30, 2023

The History and Culture of Ankeny, IA: A Guide for Visitors

Discover the rich history and vibrant culture of Ankeny IA. This guide offers an in-depth look at the history and culture of Ankeny IA, including landmarks, museums, and other historical sites. Whether you're a visitor or a local, this article will help you learn more about this charming Midwestern town.

Read Article →
April 19, 2023

Discover the Best Local Events & Festivals near Altoona, IA: A Guide to What's Happening This Year

Looking for something fun to near Altoona IA? Look no further than our guide to local events and festivals happening this year. Performance Financial CPA Tax & Accounting is your trusted community resource and this guide is just one way we can help you make the most of your time in Altoona.

Read Article →
March 30, 2023

Exploring Altoona IA: The Top Things to See and Do

Explore the outdoors and enjoy thrilling adventures in Altoona IA! Discover the area's beautiful parks and nature reserves, and learn about upcoming events and festivals. As your trusted local expert, Performance Financial CPA Tax & Accounting is here to help you make the most of your visit to Altoona IA!

Read Article →
March 30, 2023

5 Reasons To Shop Local in Des Moines, IA

Experience the unique and personalized shopping experience of local businesses near Des Moines, IA with our guide to the top five reasons to shop local. Find out how you can support the community and discover one-of-a-kind products.

Read Article →
March 30, 2023

10 Best Local Restaurants in Des Moines, IA: A Guide for Foodies

Discover the top 10 best local restaurants in Des Moines IA with our comprehensive guide for foodies. From Italian to Vietnamese Cuisine, find out where to go for the best dining experience in the city. Don't miss out on these must-visit culinary destinations.

Read Article →
Power Washing Companies
February 16, 2023

12 Tips to Scale & Grow a Pressure Washing Business

Here are 12 Insanely Valuable Tax & Growth Hacks for Pressure Washing Businesses.

Read Article →
Power Washing Companies
December 5, 2022

6 Best Tax Write Off's for Your Small Business

Small business owners, here's the 6 biggest and best write offs you should be working with your accountant to maximize.

Read Article →
This is some text inside of a div block.

Don't Wait Another Day! You'll Miss Tax Savings & Peace of Mind

Deadlines are everywhere for tax strategies, and your business deserves the peace of mind, and strategic advantage we can provide.

Tax Savings

23.2%