As the FIFA world championship is coming to an end, we have seen some very good teams perform. Our daughter and her husband lived in France and Belgium for a time. One chose to cheer for France and the other Belgium. Fortunately, they are happy that both teams have competed so well.
What makes a good team? Knowing the rules and doing the best with the opportunities presented.
The Tax Cuts and Jobs Act (TCJA) has changed some of the rules for business owners; and, like in sports, knowing the rules and doing the best with the opportunities presented is important in the business world.
Under the TCJA, some tax deductions have been limited or eliminated. For example, most meals are now limited to 50% of the cost as a deduction, while any entertainment has been fully eliminated as a tax deduction. This means you can deduct half the cost of a meal with a client, but you cannot take the client to a round of golf, a basketball game, or even a soccer match.
In soccer, records are kept on teams and players. Accurate records lead to accurate statistics. In businesses, records need to be kept to show they are entitled to tax deductions. Otherwise, owners may pay higher taxes due to missing receipts or documents. Accurate records lead to accurate tax returns. You may consider hiring an accountant or bookkeeper to make sure your transactions are recorded correctly.
When making business decisions, know the rules and make the best decisions. We can help you do your best with the opportunities presented. We are Stapley Accounting…Your QuickBooks and Tax professionals.