Small Business Education: Tax changes for 2023 and beyond.

What is the number one question you get asked by business owners.

WHAT IS THE BEST ENTITY TO OPERATE IN AND HOW CAN YOU SAVE ME TAXES WITHOUT TOO MUCH COST HAVING TO INCLUDE EMPLOYEES IN A PLAN.

Let’s shift gears a little and talk about some of the Major changes that 2023 is bringing for Business owners.  Those of you watching please keep in mind that the items we cover in this video are not all inclusive and you should consult your tax professional to make sure you cover all changes that might affect you.  

Secure Act and 2.0 changes for 2023 

1. In another video Justin and I talked about the free 401k tax credits that the government is offering.  If you missed that we will post a link in the description.  I highly recommend watching that one. 
2. For those that have heard of these changes, we wanted to bring in Ms. Stern to talk about how she sees the credits playing out and what key features you should look out for. (ie: Paperwork, forms, documentation.)

 

Bonus Depreciation is going away. 2023 instead of 100%, drops to 80% then 2024 60%

           Then 2025 40%, 2026 20%, 2027 gone, unless government writes new law which they

           do when economy slows down.

 

Claiming a net operating loss.Post 2020 no carryback anymore, carryforward indefinite

            80% limitation

 

Excess Business loss limits For noncorporate taxpayers. Extended trhu 2028. Limitation       

            $270,000 or $578,000 filing jt

 

Interest expense limitation

1. Part time employees now available to participate in 401K
2. Credit available with 50 or fewer employees, credit for setting up plan
3. Meals and entertainment were 100% deductible during covid, 2023 back to 50%
4. SEP IRA can now have as a Roth
5. Long term care insurance premium can be deducted like self-employed health insurance

           But it has a cap based on age and only long term care part, not life ins part of premium.

 

We also want to cover a few unique tax strategies that most people don’t know are at their disposal and could drastically change their tax liabilities.

Business rents your home for up to 14 days a year

 

Employing your children - benefit you can exclude social security on them if you like. 

            I would pay it so they start racking up their credits in case social security still exists then.

 

MERP - Medical Expense Reimbursement plan.Need formal document. You can use

            for C corp for you and employees or sole proprietor for employees only. 

 

Donna you brought up SDI  can you explain what you mean by that?

1. Cap on SDI disappearing so recommend to stop SDI withholding for owners

Using form DE459 because no more cap on wage amount

There are also the employee retention credits but there are plenty of firms pushing that.  One of the topics we wanted to get into today was Cost Segregation Studies but because there is so much to unpack here we don’t have time, so if you would like to learn about how you can implement these topics into your tax savings please reach out to us. 949-492-6900.

 

To go along with that, Donna has a great website you can subscribe to to be able to ask a multitude of questions.  It’s like having a CPA in your back pocket you can bounce ideas and questions off of.  Check that out at Prepaidtaxadvice.net

I think we will leave it here for this session.  Thank you for everyone tuning in.  Don't forget to subscribe and check out all of our other videos on Business education.  Thank you Donna for Joining us  and we will see you all again soon.