In a world where, as Benjamin Franklin says, nothing is as certain except death and taxes, you can count on apt preparations to successfully welcome the new year without a hitch. This is even more important considering the pandemic-related considerations you need to take note of.
As the leading provider of CPA tax preparation in Troy, Michigan at MET Certified Public Accountant, we are listing down what you need to consider before the year ends.
- Loan management
If you are a small business owner and applied for the extended PPP Program by the Biden Administration in the state, know that forgiven PPP loans will not be taxed. Be sure to provide documentation with the forgiveness application as required by the CARES Act.
- Home office
Are you a business owner, 1099 contractor worker, or a self-employed individual using a home office for your business? You can deduct a portion of your housing expenses against your business income.
There are two ways you can do so—one, through the simplified method where you can deduct $5 per square foot of your home you used for business and, two, through the standard method where you multiply your expenses by the percentage of your home devoted to business use.
Know what method of deduction works the best for you by enlisting tax and certified public accountant services.
- Property modifications and purchases
Did you modify your office space or buy additional materials to help prevent COVID-19? You can deduct up to 100% of the measures you made per the Tax Cuts and Jobs Act of 2017 (TCJA). Be sure to verify that your property is a ‘qualified business property’ to be eligible.