Don’t Worry About Taking “Too Many” Deductions
Always document and claim every deduction you’re entitled to—it’s your right as a taxpayer. Many business owners, especially those just starting out, mistakenly leave money on the table by not claiming all their deductions, even when those deductions result in a tax loss.
But you won’t make that mistake. Why? Because your tax accountant will understand the value of every deduction and the importance of claiming them to ensure your taxes are accurate and fair.
If your deductions exceed your business income, you’ll have a tax loss for the year. With a few adjustments, tax law categorizes this as a “net operating loss” (NOL). For new business owners or those experiencing challenges this year, an NOL is a real possibility. The great news? An NOL can become a financial asset for your business, as 2024 NOLs can be carried forward to reduce taxable income in future years, creating potential cash flow benefits down the road.
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