Ten Tax Tips from Successful Business News
According to Successful Business News and the American Institute of CPAs, there are ten key words to remember when filing your taxes this tax season! Here they are:
1. Expenses: Keep a log or diary of your expenses throughout the year. When tax season comes, they will be much easier to manage.
2. Deductions: Make sure you know all the deductions you are entitled to. The most common deductions for small business owners are: entertainment, travel, meals, capital assets, home office and health insurance. Much like expenses, it is good to have a log of your deductions throughout the year.
3. Traps: A small business owner may do some things that are more likely to get IRS attention than others. It’s important to claim as much as you can but maintain those claims within what you are alotted.
4. Retirement: You must have earned income each tax year to qualify for a tax-deductible retirement plan. There funds paid into the retirement plan are deductible and they may also grow tax-free until retirement.
5. Equipment: For tax years beginning in 2011, a small business may deduct up to $500,000 in equipment purchases as long as the business spends $2 million or less for equipment for the year. This can include equipment repairs.
6. Payroll: Payroll taxes are the most common taxes to be overlooked and misrepresented. Be sure to get these correct with each employee to avoid any problems.
7. Insurance: If you have health insurance coverage for your employees, check to see if you are eligible for the small business health care tax credit.
8. Veterans: An expanded tax credit is available to business owners who hire certain unemployed veterans.
9. Contributions: Many small business owners donate goods or services to charitable organizations throughout the year. Be sure to get a valuation for any non-cash items your business donates to charity so you’ll have the records you need to support the deduction for your contributions.
10. Help: If you are unsure about anything related to your tax obligations under the law, you should seek professional help from a certified public accountant. To read the rest of this article, and for other business news please visit: