Tax-deductible business expenses need to be ordinary and necessary to operate your business. Consult your tax professional for more details on qualified business expenses.<\/p>\n
3. Review Depreciation<\/h3>\n
New depreciation rules have come into effect in recent years due to the Tax Cuts and Jobs Act (TCJA). These changes allow you to write off most depreciable assets in the year they\u2019re placed into service, according to the IRS. (1)<\/p>\n
Common items you can write off for depreciation include computers, equipment, machinery, cell phones, buildings, office furniture, and
\nvehicles, as well as intangible items like copyrights.<\/p>\n
Make sure you keep a list of everything that counts as a depreciable expense. Doing so will help you lower your business\u2019s taxable income.<\/p>\n
4. Check Eligibility for Company Retirement Plans<\/h3>\n
There are several different tax-advantaged retirement plans available to small business owners, including the solo 401(k), the SEP IRA, and the SIMPLE IRA. A solo 401(k) is designed for businesses with only one employee, the business owner, whereas SEPs and SIMPLEs can be used for businesses with more employees, though SIMPLE IRAs are capped at 100 employees.<\/p>\n
According to the IRS, (2) an employee can participate in a SEP IRA if they:<\/p>\n
- \n
- Are at least 21<\/li>\n
- Have worked for the employer in at least 3 of the last 5 years<\/li>\n
- Received at least $750 in 2024<\/li>\n<\/ul>\n
Business owners can choose to be less restrictive than this and allow other employees to participate in a SEP, but you can\u2019t be more restrictive than these IRS rules allow.<\/p>\n
Review your SEP IRA eligibility requirements to ensure employees can participate in the program if you want them to.<\/p>\n
Choosing to add an employer-sponsored retirement plan to your company can be a great way to take advantage of tax credits, (3) including
\nthose for setting up a new plan and auto-enrolling employees. You may also be eligible for additional tax deductions by making qualified
\nemployer contributions on behalf of your employees. It\u2019s important to review your options with a qualified financial professional before making a decision on a retirement plan as each plan type comes with its own unique benefits and drawbacks.<\/p>\n5. Review New Due Dates & Filing Methods for 1099s<\/h3>\n
A new rule that began in 2020 (4) states any freelancers or contract workers who earned more than $600 from your company will receive Form 1099- NEC instead of 1099-MISC. NEC stands for \u201cnon-employment compensation\u201d\u2014and it\u2019s only used for reporting independent contractor income.<\/p>\n
1099-NEC forms are due on January 31. If this day falls on a weekend, they\u2019re due the following business day.<\/p>\n
\nWe Are Here to Assist You<\/h3>\n
At\u00a0White Oak Wealth Partners<\/a>, we focus on empowering small business owners to build, safeguard, and enjoy their wealth for the long term. If you’re looking to finalize any financial loose ends before the new year, we’re here to help. We collaborate closely with our network of CPAs to make sure you receive comprehensive financial advisory services, including tax planning and cash flow management.<\/p>\n
To get started, contact us by calling 814-835-4551, emailing\u00a0MICHAEL.NEDRESKI@LPL.COM<\/a>,\u00a0or\u00a0scheduling an appointment here<\/a>.<\/p>\n
![\"\"](\"https:\/\/whiteoakwealtherie.com\/ideas\/wp-content\/uploads\/2024\/12\/WOW-Michael-headshot-circle.png\")
\nAbout Michael<\/h3>\nMichael Nedreski <\/a>is the visionary force behind White Oak Wealth Partners. With more than 35 years in the financial services industry, he has built a reputation for helping business owners, executives, and families navigate complex financial decisions with clarity and confidence.<\/p>\n
Drawing on decades of hands-on experience, Michael brings strategic insight to the firm\u2019s growth and client relationships\u2014guiding long-term planning, transition strategies, and multigenerational wealth conversations. His leadership continues to shape the firm\u2019s mission: to deliver thoughtful, personalized guidance rooted in enduring principles.<\/p>\n
Michael is deeply committed to the long-term success of the clients he serves and the team he leads. His forward-looking perspective and ability to simplify complexity have made him a trusted advisor and a respected leader in the financial community. To learn more about Michael, connect with him on LinkedIn<\/a>.<\/p>\n
Specific individualized tax advice not provided. We suggest that you discuss your specific tax issues with a qualified tax advisor.<\/i><\/p>\n
\n(1)\u00a0IRS, 2020, September,\u00a0https:\/\/www.irs.gov\/newsroom\/irs-finalizes-regulations-for-100-percent-bonus-depreciation#:~:text=The%20100%25%20additional%20first%20year%20depreciation%20deduction%20was%20created%20in,appliances%20and%20furniture%20generally%20qualify.<\/a>
\n(2)\u00a0IRS, 2024, July,\u00a0https:\/\/www.irs.gov\/retirement-plans\/retirement-plans-faqs-regarding-seps#:~:text=Employees%20must%20be%20included%20in,your%20business%20for%20the%20year.<\/a>
\n(3)\u00a0IRS, 2024, August,\u00a0https:\/\/www.irs.gov\/retirement-plans\/retirement-plans-startup-costs-tax-credit<\/a>
\n(4)\u00a0Intuit TurboTax, 2024, October,\u00a0https:\/\/turbotax.intuit.com\/tax-tips\/irs-tax-forms\/what-is-form-1099-nec\/L5fbwIFSn<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"With the year winding down and the holiday season upon us, it\u2019s an important time for small business owners to assess their operations and financial […]<\/p>\n","protected":false},"author":2,"featured_media":19,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/7","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/comments?post=7"}],"version-history":[{"count":11,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/7\/revisions"}],"predecessor-version":[{"id":90,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/posts\/7\/revisions\/90"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/media\/19"}],"wp:attachment":[{"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/media?parent=7"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/categories?post=7"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/whiteoakwealtherie.com\/ideas\/wp-json\/wp\/v2\/tags?post=7"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}