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Helping control the cost of running your business
It takes money to run a business, but there are credits and incentives programs available to offset those expenses on a variety of fronts. There are state and federal programs related to manufacturing or production activities, as well as planning strategies that can substantially reduce federal excise tax expense. For companies with overseas operations, export incentives should also be considered.
Additionally, there are cost-reduction opportunities that don't fit into neatly prescribed boxes, but are still based on the way you do business and designed to encourage business growth activities.
Meals and entertainment deductions
A review of your meals and entertainment (M&E) expenses can help ensure you are making the most of your business expense deductions. While these expenses are generally limited to a 50 percent deduction, there are numerous exceptions that allow 100 percent deductions for certain activities that are often overlooked or misclassified. Our M&E team can perform an M&E study to maximize your deduction using IRS-approved statistical sampling techniques and identify improvements to your accounting policies and procedures in order to maximize the deduction in the future.
Governmental entities aren't the only ones encouraging efficiency. Many utility companies also offer incentives to business customers to make investments to reduce their energy consumption. Programs generally cover either a percentage of expenses or provide a fixed-dollar amount. Pre-approval is usually required.
Proposed regulations to remove the benefits and burdens test creates a disadvantage for some businesses seeking to claim a section 199 deduction.
Notice 2016-05 provides rules for making claims for the retroactively extended 2015 biodiesel mixture and alternative fuels excise tax credits.
Importers of electronics must understand their responsibilities surrounding the excise tax on ozone-depleting chemicals.
Retail taxpayers should take note of IRS guidance addressing the treatment of advertising allowances for purposes of section 199.