Small business is the heart of the economy, and family businesses keep the blood (and cash!) flowing. In fact, according to a recent SCORE survey, family owned businesses are the biggest job creator in the US, employing 60% of the workforce and generating 78% of all new jobs. But only 30% of these businesses make it from the first to second generation intact; fewer than 12% make it to the third generation; and only 13% will remain in the family for more than 60 years.
Being self-employed creates a lot of tax questions. Two that I see most frequently concern making sure you get all the deductions you’re entitled to and how you pay your tax. I only have enough space here to hit the highlights but hopefully this will help.
As tax filing season speeds on toward that inevitable April 15th deadline, I want you to take a moment before you either hit send on your e-file, drop the return in the mailbox or sign the electronic filing authorization form for your tax preparer, and make sure you haven’t missed a retirement plan deduction.
As I have told you several times, the 2017 Tax Cuts and Jobs Act significantly increased the Standard Deduction, so many more taxpayers don’t have to go through all their medical bills, collect real property and vehicle tax payments, and add up all your charitable contributions.