#businesstaxes Archives | Hutchinson and Bloodgood LLP

Tax Planning

Expecting a big revenue year? Consider tax moves before year end

If your business is booming, congratulations! Higher profits are great news, but don’t overlook your 2026 income tax obligations. Let’s explore ways to lower taxes and avoid tax-filing surprises.

October 12, 2026

For most small business owners, strong revenue growth is something to celebrate. But a profitable year can also significantly increase your income tax liability. If your business is on track for a banner year, now is the time to evaluate tax-reduction strategies. Here’s some guidance for sole proprietors and owners of pass-through entities (such as […]

#businesstaxes, #SmallBusinessTax, #TaxPlanning

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Tax Planning

A small business primer on expense deductions

Which of your small business’s expenses are tax-deductible? This primer can help you understand the potential ramifications of spending decisions and which records you need to retain.

September 28, 2026

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Whether your small business is new or you’ve run it for decades, you may not fully understand which expenses are potentially tax-deductible and which aren’t. After all, that’s why you have a tax advisor! But it’s worth keeping up with tax law because your daily decisions could significantly reduce your business’s taxable income — and […]

#businesstaxes, #TaxDeductions, #TaxPlanning

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Tax Planning

5 tax-smart ways to take cash out of your C corporation

Dividends aren’t the only way to take cash out of your C corporation. Here are some more tax-efficient alternatives to think about before year end.

September 15, 2026

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If you own a closely held C corporation, you might be looking for ways to withdraw cash from your business. Paying yourself a dividend can be a straightforward option — but it comes at a tax cost. Corporate distributions are generally taxable to you to the extent of your company’s “earnings and profits,” and your […]

#businesstaxes, #CCorporation, #TaxPlanning

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Tax Planning

Let’s trade! Business bartering is still taxable

Bartering can be a viable way to conduct business, especially if you’re strapped for cash. But you can’t escape tax obligations.

August 17, 2026

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Trading items or services — without exchanging cash — has long been common among small businesses. Today, some use online barter exchanges to facilitate trades. In addition to preserving cash flow, these types of transactions may expand your purchasing power, help you move overstocked inventory and increase your business’s exposure to new markets. But bartering […]

#Bartering, #businesstaxes, #TaxPlanning

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Tax Planning

Unlock tax-free gains with QSB stock

C corporation shareholders usually owe tax on gains from selling stock. But with qualified small business (QSB) stock, owners hold the key to a potential gain exclusion. Is this strategy right for your business?

April 28, 2026

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If you run your business as a C corporation, you may be eligible for a potentially significant tax break for qualified small business (QSB) stock. This opportunity has existed for years, but recent tax law changes have enhanced it. What’s a QSB corporation? QSB corporations are a special type of C corporation. At the entity level, QSB […]

#businesstaxes, #QSBS, #TaxPlanning

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Tax Planning

Material participation: Why it matters for LLP and LLC owners

LLC and LLP owners: Can you deduct your business losses this year? The answer may depend on whether your activity is considered passive under the IRS’s passive activity loss rules.

April 20, 2026

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The passive activity loss (PAL) rules may limit your ability to deduct losses from a business structured as a limited liability partnership (LLP) or limited liability company (LLC). Depending on how your ownership interest is treated under these rules, you may have more or less flexibility to claim losses in the current year. Here’s a […]

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Tax Planning

Year-end tax planning for accrual-basis taxpayers

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November 4, 2025

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Projecting your business’s income for this year and next can allow you to time income and deductible expenses to your tax advantage. It’s generally better to defer tax — unless you expect to be in a higher tax bracket next year. Timing income and expenses can be easier for cash-basis taxpayers. But accrual-basis taxpayers have […]

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Tax Planning

Ways to manage the limit on the business interest expense deduction

March 3, 2025

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Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), businesses were able to claim a tax deduction for most business-related interest expense. The TCJA created Section 163(j), which generally limits deductions of business interest, with certain exceptions. If your business has significant interest expense, it’s important to understand the impact of the […]

#businesstaxes, #Section163j, #TaxPlanning, #TCJA

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Tax Planning

Drive down your business taxes with local transportation cost deductions

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December 9, 2024

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Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require […]

#businesstaxes, #cost, deductions

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