Small Business Tax Planning Strategies

Categories: Federal Tax, IRS CE
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About Course

This two-hour continuing education course provides tax professionals with practical, compliance-grounded strategies for advising small business clients on legitimate tax planning opportunities available under current law. The course addresses business expense deduction fundamentals, depreciation and cost recovery elections, small business retirement plan options, and timing and credit strategies, equipping enrolled agents and other tax return preparers to help small business clients minimize tax liability while remaining fully compliant with applicable substantiation and documentation requirements.

Participants examine the ordinary and necessary business expense standard, accountable plan reimbursement rules, Section 179 expensing and bonus depreciation elections, small business retirement plan options, accounting method elections, and targeted business tax credits including the research credit and the work opportunity tax credit. Throughout the course, planning strategies are presented as legitimate elections and documented positions available under current law, distinguished clearly from aggressive or unsupported tax positions.

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What Will You Learn?

  • Apply the ordinary and necessary business expense standard under IRC §162 and the accountable plan reimbursement rules
  • Apply the Section 179 expensing election and bonus depreciation rules to a small business's capital asset purchases
  • Compare the principal small business retirement plan options and their contribution limits and administrative requirements
  • Identify accounting method elections and targeted tax credits available to a small business
  • Apply substantiation and documentation requirements to common small business deductions, including home office and vehicle expenses
  • Distinguish legitimate small business tax planning strategies from unsupported or aggressive tax positions

Course Content

Module 1 – Business Expense Deductions — Standards, Timing, and Substantiation
This module covers the ordinary and necessary business expense standard under IRC §162, accountable versus nonaccountable reimbursement plans, the home office deduction under IRC §280A, vehicle expense substantiation, the §274(n) 50% business meal limitation, and general substantiation and recordkeeping standards.

  • Business Expense Deductions — Standards, Timing, and Substantiation

Module 2 – Depreciation and Cost Recovery Planning
This module addresses the distinction between a currently deductible repair and a capital improvement, Section 179 expensing, bonus depreciation under IRC §168(k), the tangible property de minimis safe harbor, and the MACRS mid-quarter convention trap.

Module 3 – Small Business Retirement Plan Strategies
This module compares the principal small business retirement plan options — SEP-IRA, SIMPLE IRA, and solo 401(k) — along with defined benefit and cash balance plans for high-income owners, and recent Roth and SECURE 2.0 developments.

Module 4 – Accounting Methods, Timing Strategies, and Targeted Tax Credits
The final module covers cash versus accrual accounting method eligibility, income and deduction timing strategies within the constructive receipt doctrine, the research credit, the work opportunity tax credit, and the documentation standards that distinguish legitimate planning from unsupported positions.

Final Assessment – Small Business Tax Planning Strategies
You have completed a comprehensive review of small business tax planning strategies, covering business expense deductions, depreciation and cost recovery, retirement plan options, and accounting method and credit planning. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

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