With rising costs, a shrinking labor force, and the basic fact that 20% of small busiensses fail within the first year, the odds are already stacked against you to start your entrepreneur dream. So with Kamala Harris setting a goal of receiving 25 million new small business applications within her first term, there has to be an added incentive for people to take the leap into the role of business owner. 

Under Harris's proposed tax plan, new businesses can deduct up to $50,000 in startup expenses on their federal taxes. This is huge, considering that the deduction sits at $5,000 currently. Today, anything over $5,000 in startup expenses has to be amortized over 15 years. With the proposed plan, new small businesses could allocate the tax deduction across multiple years or claim the full $50,000 deduction once they turn a profit.

Harris realizes that in order for businesses to weather the storm of those first few years in business, the federal government has to meet the current realities of starting a business. The average startup costs of new businesses average at least $40,000. A deduction of only $5,000 is irrelevant compared to what it actual costs to start a business.  

How would you benefit from this proposed tax deduction? 

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