Understanding Tax Credits and Deductions for Small Business Owners
Understanding Tax Credits and Deductions for Small Business Owners: In this excerpt from Your Money Map with Jean Chatzky, Michelle Singletary discusses tax credits and deductions for small business owners.
Key Takeaways
- You cannot deduct 100% of a vehicle as a business expense if you use it for personal errands like grocery shopping or attending church—only the business-use percentage is deductible
- Home office deductions are similarly limited to the square footage and time actually used for business purposes, not your entire home
- The tax benefit of a deduction is percentage-based on your tax bracket, meaning a $1,000 deduction is worth more to someone in a higher tax bracket than someone in a lower one
- Small business owners commonly overstate deductions by claiming personal-use assets as 100% business expenses, which can trigger audit risk
Understanding Tax Credits and Deductions for Small Business Owners: In this excerpt from Your Money Map with Jean Chatzky, Michelle Singletary discusses tax credits and deductions for small business owners. Watch more videos on finStream TV featuring Michelle Singletary at this link: https://www.finstream.tv/featured/michelle-singletary/
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