My dad runs his own masonry business with the only one other employee. He gets very frustrated when dealing with taxes. Some years he gets money back, one year he had to pay in $13k. I’m not sure he is getting the best advice from his tax pro because he regularly tells me that he isn’t working more this week because he might fall into a higher bracket and have to pay in tons of money.
My understand of self employment tax law is limited. But I know for traditional tax filings, the higher tax brackets only apply to the additional moneys earned above the previous bracket. Is that true for self owned businesses too?
Additionally, the tax guy keeps telling my dad to buy a bunch of tools for a tax deduction. So he will go out and buy stuff for the sole purpose of increasing the deduction. However, every single year, he just goes with the standard deduction. Is all this money spent on tools wasted or is there something I’m missing?
Submitted September 12, 2021 at 12:10PM by A_Moments_Notice https://ift.tt/3E9QNgK
