We all know small business owners are super busy running the operation, planning strategy and making sure they earn a healthy profit at year-end. Thus, understanding and staying up to date on the latest tax rules is not always top of mind. However, we don’t want to totally neglect this area because there can be good tax savings involved and this adds to the bottom line. Even though these tax breaks are ultimately claimed on the tax return, year-round tax planning is important to fully maximize any tax benefits.
The following article discusses some of the higher impact and more generous tax deductions and credits available to small businesses. In general, these tax breaks are not specific to 2020 but are available in any year. Under the tax code, self-employed individuals are treated like small business owners so the rules apply uniformly.