Preparing Your Business for 2023 Tax Filing
January 29, 2024
As you pull together your documents to share with your accountant for 2023 tax preparation, there are many potential deductions and credits that may be relevant for your business for your upcoming filing.
2023 Business Tax Update:
- SECURE 2.0
expanded the foundation of the 2019 SECURE Act which sought to increase individuals’ retirement savings. 2022 changes included a start-up costs credit, expanding 401(k) auto enrollment and raising the age for required minimum distributions.
- Meals and entertainment
– Beginning January 1, 2023 the temporary 100% meals deduction has now dropped back down to 50%. We also discuss providing proper substantiation for entertainment expenses including the time and place of the expense as well as the business purpose.
- Depreciation and useful tips
– consider the differences between depreciation methods and which makes more sense for your property, plus miscellaneous tips to maximize your 2023 deductions for year-end.
- Pass Through Entity Tax (PTE Tax) has been enacted in 36 states and proposed in 3 more. Find out what changes may affect your filings in 2023, and for Connecticut entities, learn more about changes to PTET effective in 2024.
- Research and expenses – be sure you are aware of any required capitalization on specified research and experimental expenditures (SREs) and which expenditures count toward this designation
- The IRS Dirty Dozen for 2023 include phishing, fake charities, and scammers aggressively pitching large refunds related to ERC claims. Ensure you are being careful to follow tax advice that aligns with IRS standards from a trusted licensed accountant, and be wary of strange or unexpected requests for personal information and tax forms.
- ERC Changes
– the IRS created a withdrawal option to help small business owners and others who were pressured or misled by ERC marketers or promoters into filing ineligible claims. Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest.
- Corporate Punch List and MBK Resources – we’ve compiled a quick overview of preliminary to-dos and follow-up planning items as a reminder about our 2023 Tax Filing page which includes an easy to use contact form, resources, and the latest news in taxation. This page will be available for quick reference throughout tax season.
If you have any questions about the presentation, please contact your advisor or reach out to us directly.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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