Tax Code Updates for 2024: Key Changes Every Business Owner Needs to Know
As a business owner, staying informed about changes in the tax code is essential for managing your financial health and maximizing opportunities. The 2024 tax year brings several important updates that could impact your business operations, deductions, and overall tax liability. In this post, we’ll break down the key changes, highlight actionable insights, and provide access to expert advice through a video from Jennifer, the owner of Perfect T Accounting.
Watch the Video: Key Tax Code Updates for 2024
In this short video, Jennifer shares her expertise as an experienced accountant, walking you through the most significant tax changes for 2024 and how they may impact your business. Watch it for a quick overview, then dive into the detailed breakdown below.
Key Tax Code Updates Every Business Owner Needs to Know
Here are the most important changes in the 2024 tax code and what they mean for your business:
1. Adjustments to Tax Brackets and Standard Deductions
The IRS has updated tax brackets to account for inflation, potentially shifting the amount of taxable income in each bracket.
The standard deduction has increased:
$15,000 for single filers
$30,000 for married couples filing jointly
What this means: Review your estimated taxable income to see how these changes affect your liability.
2. Expanded Energy Efficiency Tax Credits
Businesses investing in renewable energy sources or energy-efficient upgrades can now access expanded tax credits.
What this means: Consider upgrading facilities or equipment to leverage these credits and reduce long-term operating costs.
3. Employee Retention Credit Updates
Businesses impacted by the pandemic may still qualify for ERCs with retroactive claims for previous quarters in 2024.
What this means: Work with an accountant to determine eligibility and ensure compliance with updated regulations.
4. Changes to Section 174 Research & Development (R&D) Deductions
Certain R&D expenses must now be amortized over five years instead of being deducted in the year incurred.
What this means: Plan ahead for cash flow adjustments if your business engages in research and development.
5. Economic Nexus Laws for Remote Work
States like Arizona are implementing economic nexus thresholds, requiring businesses with remote workers or sales across state lines to file in multiple jurisdictions.
What this means: Track where your employees work and where sales are generated to ensure compliance.
6. Bonus Depreciation Phase-Out
The 100% bonus depreciation for qualified property is being phased down to 80% in 2024.
What this means: If you're planning significant capital investments, act quickly to maximize deductions.
7. Expiration of Certain TCJA Provisions
Some benefits from the Tax Cuts and Jobs Act (TCJA), like increased Section 179 limits, are set to expire at the end of 2025.
What this means: Use 2024 as a planning year to maximize these advantages before they sunset.
Why You Need an Accountant Who Understands These Changes
Navigating the intricacies of the 2024 tax code can be overwhelming. Working with a knowledgeable accountant ensures you’re taking full advantage of available deductions and credits while staying compliant with new regulations. At Perfect T Accounting, Jennifer and her team specialize in helping business owners like you optimize your tax strategies and minimize liability.
Dive Deeper with Perfect T Accounting
Ready to take the stress out of tax season? Watch Jennifer’s video above for an expert overview, then contact Perfect T Accounting to schedule a consultation. For more actionable advice and insights, be sure to check back on our blog regularly.
Stay informed. Stay compliant. Stay successful with Perfect T Accounting.
