Have you struck out on your own and started your own business? Well, if you have, congratulations! You may want to consider the tax benefits you can receive as a sole proprietor (a fancy word for business owner).
A sole proprietor is someone who owns an unincorporated business.
As a sole proprietor, in addition to business expenses that are deductible, you also may qualify for some business credits.
While business credits can range from the really particular, specific credits like the Carbon Dioxide Sequestration credit, an energy efficient credit for business that captures and disposes of carbon monoxide in a qualified facility, there are also more practical, everyday credits that business can utilize.
If you have employees, you may be able to utilize the Credit for Employer-Provided Childcare Facilities and Services. This credit applies qualified expenses you paid for childcare resources for your employees.
There’s also an Energy Efficient Home Credit (form 8908) which is for eligible contractors of certain homes sold or leased to someone else for use as a residence.
For more altruistic business owners, there is the Work Opportunity Tax Credit which rewards business owners for hiring people who are from high poverty areas or have special employment needs.