Ensure Your Start-up Business Qualifies for Deductions
Happy New Year and welcome back! This week, two recent cases illustrate the steps you can take to ensure your start-up business qualifies for deductions. Plus, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has had a significant impact on retailers. Read on:
WE LOVE IT WHEN A PLAN COMES TOGETHER
Not long ago we wrote about a case involving the so-called “hobby loss” rules and how a taxpayer was able to demonstrate a profit motive and beat the IRS in Tax Court. Two recent cases highlight the importance of having, and following, a business plan in establishing that your fledgling business’s expenses should be deductible.
SUPPLY CHAIN INTERRUPTIONS COULD LEAD TO HIGHER TAXES
In addition to the medical and sociological implications of the COVID-19 pandemic, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has also had a significant impact on retailers. That truth was felt by any parent looking for the latest tech gadget or hot toy between Thanksgiving and Christmas.
If you have any questions regarding the subject of this article, please reach out to firstname.lastname@example.org
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use.
MPPM, CPA, Partner, Business Tax Leader
© 2021 Friedman LLP. All rights reserved.