As a Maine-based small business owner, you may be wondering if you can write off bad debts at tax time. Since cash-basis companies don’t recognize revenue until it’s received, and therefore wouldn’t have anything on the books to deduct, only businesses that record income on an accrual basis can write off uncollectible accounts. These accrual-based  Continue Reading »

Did you know there are certain tax breaks available to small businesses when they accommodate disabled individuals? This is a brief summation of three of those tax breaks: The disabled access credit A small business might be eligible for a nonrefundable credit when it has expenses for providing access to individuals with disabilities. The company can’t have more  Continue Reading »

Claiming a casualty loss for damage to personal property can be difficult, as the tax law limits any deductions in two ways: The first $100 of any casualty cannot be deducted. You can only write off casualty losses when the total amount in one year (minus the $100 per casualty amount) exceeds 10 percent of  Continue Reading »

As a Maine-based small business owner, you may be considering going back to school to gain new skill to help your business. Are the tuition expenses tax deductible? The training must meet one or both of the following standards to be considered work-related education for business deduction purposes: In order to retain your current professional  Continue Reading »

A lot of people consider turning a favorite hobby into a money-making operation. And you could be eligible for some tax deductions by starting a Maine-based sideline business. Some expense deductions that could be possible include equipment, advertising, subscriptions and business-related auto costs. It may even be possible to claim a loss that can lower  Continue Reading »

Let’s say you’ve decided to sell your Maine-based business. There are two basic ways to sell an incorporated business: sell the assets or sell the stock. Sellers prefer stock sales because profits are generally taxed at a maximum federal rate of only 15 percent. Also, when selling C corporation stock, double taxation is avoided since  Continue Reading »

The tax rules for interest deductions depend on which category the expenses are in. Here are the categories that apply to expenses that individuals can incur: 1. Business Interest. This is fully deductible. You can deduct business interest on money spent for expenses or supplies and equipment, as long as you materially participate in the operations  Continue Reading »

Slow-moving inventory is easy enough to discount or liquidate, but there’s another option that can give your Maine-based business more of a benefit: donate that stock or computer equipment to charity. In general, when you donate inventory or property used in your business, your write-off is limited to the cost of the items or property.  Continue Reading »

When you take out personal loans to buy a Maine-based small business, you want to maximize the tax write-offs for the resulting interest expense. The tax law in this area can seem complicated. But if you do some research ahead of time and talk with Filler & Associates, you can get the best possible outcome. The first  Continue Reading »