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business Saturday 12 February 2022
7 ways small-business owners can save on taxes in 2022

fied public accountant at
DiMercurio Advisors in Or-
lando, Florida.
For example, if you bought
a laptop for $3,000 two
years ago and now it's
worth $1,250, you may be
able to claim a $1,250 de-
duction if you started using
that laptop for your busi-
ness this year, he says. "This
is something that is often
missed by this group of tax-
payers and is completely
allowed," DiMercurio says.
Be sure you have the re-
ceipts or proof of the origi-
nal purchase, he adds.
6. GET READY NOW FOR
NEW PAPERWORK IN 2022
Self-employed people al-
ready get a Form 1099-NEC
from clients who pay them
at least $600 a year, but if
those clients are using Ven-
mo, PayPal or similar pay-
ment platform to send the
money, another tax form
may start showing up for
2022. "They're going to get
a 1099-NEC from the per-
son they did independent
contractor work for , and
then from the payment
processor — if it was paid
by credit card or some
electronic means — they're
This Wednesday, Feb. 13, 2019 file photo shows part of a 1040 federal tax form printed from the Internal Revenue Service website,
in Zelienople, Pa. also going to get a 1099-K
Associated Press for the same transaction ,"
Luscombe says.
By T. OREM of NerdWallet business expenses that you 3. WATCH THAT ODOMETER sponsored 401(k), including That means small-business
Taxes are complex, and paid with the loan money. If you're self-employed, you being able to sock money owners will need to be ex-
for small-business owners, "The IRS has been clear," can get a tax deduction away pretax. tra organized in 2022. "It's
freelancers and people says Meredith Tucker, who for every mile you drive for SEP IRAs are another op- going to be a lot more pa-
with side gigs, they're even leads the Entrepreneurial business purposes. In 2021, tion, and you have more per and sorting out — mak-
more complex — especial- Services Group at account- the rate was 56 cents per time to contribute — espe- ing sure you're not double-
ly now, as filers reckon with ing firm Kaufman Rossin in mile, and in 2022, the rate cially if you get a tax exten- reporting income, too," he
the tax effects of small-busi- Fort Lauderdale, Florida. rose to 58.5 cents per mile. sion, Tucker says. "You can says.
ness relief programs and State-level tax rules may That means a 20-mile trip to take the deduction on your 7. BE SERIOUS ABOUT BOOK-
rule changes. have a different stance on meet a client might score a 2021 taxes and not actually KEEPING
But those new twists and PPP taxability, however, so deduction of about $12 this have to fund the retirement "If you're eating, sleeping,
turns can create some tax- be sure to consult with a tax year. account until the extended drinking or thinking about
saving opportunities, ac- qualified tax pro. But don't guess here; the due date of the return, your business, chances are
cording to three tax pros. 2. EAT UP IRS may ask you to substan- which could be in Septem- what you're doing is tax-
Here are seven things they For 2021 and 2022, the busi- tiate your mileage. "The ber, October," she says. deductible," DiMercurio
say entrepreneurs and in- ness meals deduction is important thing, especially 5. LOOK AT WHAT'S SITTING says. Even a few cups of
dependent workers can do up from 50% to 100% if the if you don't have an exclu- IN YOUR HOME OFFICE coffee can be tax-deduct-
to lower their tax bills and food and beverages are sive vehicle used just for The home office deduction ible under the right circum-
their anxiety this filing sea- from a restaurant ."That businesses, is to keep a log," is a popular way to get a stances, and it can add up
son and in the year ahead. can include takeout and Luscombe says. tax break on rent, utilities to big money in tax savings,
1. DON'T SWEAT THAT PPP delivery. It doesn't have to 4. CAPITALIZE ON SPECIAL and other house-related he says.
MONEY be eaten on the premises," RETIREMENT OPTIONS expenses , but a home of- But be sure to keep re-
If your business received a says Mark Luscombe, who There are special tax breaks fice can produce other tax ceipts and use accounting
loan through the Paycheck is a federal tax analyst for for retirement savings if you breaks, too. If you comman- software so you have good
Protection Program, or Wolters Kluwer Tax & Ac- work for yourself. Solo 401(k) deered an old table, com- records. Also, don't stretch
PPP, and you qualified for counting. s, also called one-partic- puter or chair in 2021 for the truth. Tax evasion is a
forgiveness, the IRS gener- But make sure you're get- ipant 401(k)s , are one ex- your home office and you felony. "If you can't make
ally doesn't consider the ting your business meals ample of IRS-blessed retire- haven't already claimed it the argument for a de-
money part of your gross from a restaurant. "You ment accounts designed as a business expense, you duction or a credit without
income. In addition, on can't get a deli tray from a for self-employed people. may be able to deduct its laughing … chances are
your federal tax return, it's grocery store and have it They mimic many of the current market value, says it's not really a good one,"
usually OK to deduct the qualify," he adds. features of an employer- Sean DiMercurio, a certi- Tucker says.q