Tax laws change annually which makes it difficult for the average person to keep up with them. Although it may be tempting to file your business taxes yourself, you may be harming your business by doing so. You could incorrectly file your taxes or miss out on key deductions or credits. The tax professionals at ORT Consulting are well versed in the ever-changing tax laws, and we can help your business lessen its tax burden.
Changes to 2021 Taxes
There are several changes that were implemented for the 2021 tax season. Bear in mind, this is not a comprehensive list of all the changes made this year:
- Employee Retention Credit
Your business may be eligible for the 4th quarter employee retention credit. This credit can be applied for retroactively for the 2021 tax season. The accountants at ORT Consulting can perform an evaluation of your taxes to see if you are eligible for this employee retention credit.
- Charitable Contribution Increase
In 2020 and 2021, the percentage of charitable contributions was increased to 100% of the business’s adjusted gross income. In past years, it used to be 60% of the adjusted gross income. In 2022, this percentage is likely to decrease back to 60% unless an updated bill is passed.
- Operating Losses are More Limited
The tax laws pertaining to operating losses have changed significantly over the past few years. The CARES act changed operating loss rules in 2020 and 2021. However, these rules are now reverting to what they were prior to 2020. For the best advice on how to handle operating losses for your business, contact ORT Consulting. We can advise on the best method to handle your business net operating losses.
- Food and Drink Deductions
Business meetings over lunch or dinner are now 100% deductible. Food and drink previously was deductible at 50% if you were meeting with a business customer or client. This was increased to 100% in 2021 if the business meals meet certain criteria. For example, the business food must be supplied by a restaurant in order to be 100% deductible. Food supplied at office parties or team-building events were also 100% deductible.
Does your Business Need Accounting Help?
Our accountants at ORT Consulting can assist with bookkeeping and tax preparation for your company. We can also assist in payroll and cash flow management. Contact our office at 773-637-8802 for a free consultation.
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