The purpose of this article is to get the IRS to owe you money.
Of course, the IRS will not likely cut you a check for this money—although in the right circumstances, that will happen. But in most cases, you’ll probably realize the cash when you pay less in taxes.
This article gives you six powerful business tax deduction strategies you can easily understand and implement before the end of 2022.
1. Prepay Expenses Using the IRS Safe Harbor
You have to thank the IRS for its tax-deduction safe harbors.
IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS.
Under this safe harbor, your 2022 prepayments cannot go into 2024. This makes sense because you can prepay only 12 months of qualifying expenses under ... Log in to view full article.