If you’re like many small business owners,
tax season is not your favorite time of the year. It requires a sharp
attention to detail, collection of documents, and quality time with your
pencil and calculator. The professionals at Whyte & Associates in Rancho Cucamonga know that many clients started their business with a dream of providing great service, not filing business taxes. They offer a full suite of accounting services for clients who wish to hire a professional. However, if you’re doing it at home, consider the following tips:
- Know which form you need – While
every business must report their taxes, the type of form depends on
whether your business is set up as a partnership, sole proprietor, LLC,
or S-corp.
- Home office and office equipment –
These deductions can be intimidating because many business owners think
they are red flags for the IRS. However, if you are entitled to the
deductions you should be sure to take them.
- Travel and entertaining expenses – If
you’re discussing business with clients over dinner, you may think it’s
simply good manners to pick up the tab. However, the IRS says you can
usually deduct 50% of those costs as well. Be sure to keep your receipt
and make a note of whom the dinner was with and what business you
discussed.
- Small deductions add up – While small
expenses like books, dues to a professional organization, or stamps
might not seem like much at the moment of purchase, they can add up over
time. So, be sure to keep record of your spending.
- Ask for an extension – If you got a
late start or your tax preparation turns out to be more complicated than
you imagined, you can file for an extension. However, if you anticipate
that you’ll owe the IRS money, it’s best to send your request with a
payment, or you may owe additional interest and penalties.
For more information, call Whyte & Associates at (909) 575-0080 today.
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