If you’ve been reading the news lately, you’ve probably heard whispers of a “magical” $50,000 deduction plan for small businesses. Sounds like a dream come true, right? I mean, who wouldn’t want $50K to jumpstart their dream business? Well, hold on to your calculators because this plan might not be the jackpot it's made out to be.
Let’s cut to the chase: I’m Donna Bordeaux with Calculated Moves, and when I heard the Harris Administration touting this $50,000 deduction, my CPA senses started tingling. I dove deep into the details, and guess what? This plan is about as useful as a screen door on a submarine for 99% of small business owners. Here's why.
The $50,000 deduction they're dangling in front of us isn’t a handout. Nope. It’s for those hefty startup costs—the kind that most small businesses aren’t shelling out to begin with. Right now, under current tax law, you can expense $5,000 of your startup costs in the first year, and the rest? Well, you’ve got to amortize (translation: stretch it out over several years). So, the Harris plan suggests, “Hey, why not bump that up to $50,000?” But how many small businesses are dropping 50 grand before they even open their doors? Not many, if any.
Think about it—do you know any small biz owner spending $50K before they know if their idea will sink or swim? Me neither. In my two decades of experience, I’ve hardly seen anyone rack up that kind of tab in startup costs. The truth is, for most entrepreneurs, this plan is as exciting as doing your taxes on a Saturday night. And for the little guy trying to get a leg up in the business world, this plan won’t do a thing.
So, before you start celebrating, consider this: This proposal isn’t going to help the vast majority of us in the small business trenches. Instead, it’s more like political theater—a feel-good soundbite for the masses. I’ll say it again: Dive deeper into what politicians are pitching before you trade your vote for what sounds like a shiny deal. Spoiler alert: This one’s a dud.
At Calculated Moves, we believe in strategies that actually work for small businesses—whether that’s finding real ways to lower your taxes, help you make great decisions, or just keep Uncle Sam from raining on your parade. If you’re looking for financial peace of mind, leave the number-crunching to us so you can focus on the fun stuff—like, you know, running your business!
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Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.