SUMMER 2023

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THE DISTRIBUTOR’S LINK
Roman Basi
Roman Basi is the President of The Center for Financial, Legal & Tax Planning, Inc. Roman graduated
from Milliken University obtaining a Bachelor’s of Science Degree with a minor in Psychology. He
earned an MBA from Southern Illinois University with an emphasis in Accounting and recevied his
JD degree from Southern Illinois University. Roman is a licensed CPA as well as being a licensed
attorney in Illinois, Missouri and Florida and is in high demand for his expertise in financial, legal
and tax matters. His areas of expertise include mergers and acquisitions, contracts, real estate law,
tax and estate planning. Visit www.taxplanning.com or call The Center at 618-997-3436.
COMMON DEDUCTIONS FOR SMALL BUSINESS
OWNERS TO TAKE ADVANTAGE OF
Every year, the tax law changes. As business owners,
it is important to stay up to date with the most current
rules and regulations regarding your industry. One of
the biggest things that business owners rely on is tax
deductions. These deductions are able to lower your
taxable income and therefore, reduce your tax liability.
Some deductions have been the same for ages, and
some have changed recently. We will discuss the most
common tax deductions for business owners and the
corresponding rules for the 2023 tax year.
Many small business owners are able to qualify
for the Qualified Business Income (QBI) deduction. This
allows eligible taxpayers to deduct up to 20% of their QBI,
plus 20% of qualified real estate investment trust (REIT)
dividends and qualified publicly traded partnership income.
QBI is the net amount of qualified items of income, gain,
deduction, and loss from any qualified trade or business,
including income from partnerships, S corporations, sole
proprietorships, and certain trusts. This generally includes
the deductible part of self-employment tax, self-employed
health insurance, and deductions or contributions to
qualified retirement plans. A qualified trade of business is
any Section 162 trade or business, with three exceptions:
[1] A trade or business conducted by a C corporation.
[2] For taxpayers with taxable income that exceeds
the threshold amount, specified services trades, or
business (SSTBs). An SSTB is a trade or business
involving the performance of services in the fields
of health, law, accounting, actuarial science, financial
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services, investing, and investment management, trading,
dealing in certain assets, or any trade or business
principal asset is the reputation or skill of one or more of
its employees or owners.
For 2023, the threshold amount is $364,200 for
a married couple filing a joint return, and $182,100 for
all other taxpayers. The SSTB limitations don’t apply to
taxpayers with taxable income at or below the threshold
amount. Limitations are phased in for joint filers with
taxable income between $364,200 and $464,200,
and all other taxpayers with taxable income between
$182,100 and $232,100. For later years, the threshold
amounts, and phase-in range will be adjusted for inflation.
[3] Performing services as an employee.
Business meals are something that every business
owner has run into. Whether it is taking a client out
to eat or hosting a holiday party for the office. These
business meals for employees and clients can be tax
deductible. There was a temporary 100% deduction for
business meals in 2021 and 2022. For 2023, the meal
deduction is moved back to 50% for most situations.
Some examples of meals and their deductions are:
¤ Business meals with clients (50%)
¤ Office snacks and other food items (50%)
¤ The cost of meals while traveling for work (50%)
¤ Lunch out with less than half of company employees (50%)
¤ Food for company holiday parties (100%)
¤ Food and beverages given out free to the public (100%)
¤ Dinner for employees working late at the office (100%)
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