What’s this 20% tax deduction I keep hearing about?
Is the 20% on top of the IRS standard deduction? In other words, should qualifying business owners first deduct the standard deduction and then apply the 20%?
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TracyChuCPA CPA
Yes, sole proprietor, partnerships and S-Corp owners can deduct up to 20% of net qualified business income deductions (QBI) from a pass-through business in the ... Read more
Can I deduct mortgage interest on sch A as well as on Sch C at the same time.
Can I deduct mortgage interest on sch A and on form 8829. If yes, how do I do that. Do I fill two 1098’s.
Do sole proprietors pay self employment tax?
The IRS website states sole proprietors pay personal tax only (see chart at the bottom of the page), but it’s my understanding that they must pay both personal income tax and self-employment tax. Can you explain why ...
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TracyChuCPA CPA
Sole proprietors pay both personal income tax and self-employment tax (Medicare 2.9% and social security tax 12.4%) if there is business income. You must report ... Read more
Self-employed 401K
As a small business owner, I read that I am able to start a self-employed 401k and contribute 19k plus 25% of last years income. Would I also be able to start an IRA and deduct contributions from a second ...
Correcting W9 form for subcontractor
My business partner and I started a small business back in October 2019. We are in the bronze foundry business specializing in fine art. Our jobs sometimes involve doing subcontract work with other bronze foundries as well. Which they ...
Can independent contractor add milage traveled outside metropolitan area as tax deductible?
I do a side work as a doordash delivery, sometimes I choose to travel to another city 40 miles away to work there and come back . Can I add these 80 miles back and forth to the standard milage ...
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Josh Burkhart CPA
Any time you are utilizing your personal vehicle for business purposes, those miles driven are business miles; however, commuting miles cannot be counted. As a ... Read more