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How Your Business Clients Can Get More Deductions

Sep 12th 2018
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The IRS recently announced business taxpayers who make payments to charities or government entities and receive state or local tax credits can deduct those payments as business expenses.

The announcement came in response to taxpayer inquiries, and the IRS clarified that this general deduction rule is not affected by the recent notice of proposed rulemaking concerning the validity of a charitable contribution deduction for contributions pursuant to those programs.

The business expense deduction is available to any business taxpayer, whether or not they are a sole proprietor, partnership or corporation, provided the payment qualifies as an ordinary and necessary business expense.

That means companies generally can still deduct work-related payments in full as a business expense on their federal income tax return.

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