Running a small business can be challenging, especially as it pertains to the preparation of taxes. While the common rule of thumb is to not mess with the IRS, there is also benefit to be had in identifying every possible deduction. This process can be simplified when you work with a firm like Whyte & Associates. We have helped hundreds of business owners with their small business tax preparation, and we can help you, too.
Some of the biggest deductions that business owners may overlook are the cash expenditures that take place over the entire year. Start early. Find a way to organize the countless receipts that accumulate month after month. It is easy to assume that a few dollars spent here and there is miniscule in the big picture, but this mindset can cost you a great deal in terms of deductions once all has been added up.
There are several ways that a business may capitalize on credits and deductions. In light of the new healthcare regulations, some small businesses have been able to take advantage of eligibility for a healthcare tax credit. The credit has operated on a sliding scale, which has made this credit beneficial for businesses of various sizes, even those with fewer than 10 full-time employees.
Another often overlooked area in which a business can benefit come tax time is through property. Specifically, this tax benefit involves what is called section 179 property. Eligible properties up to $500,000 are those in which a product is manufactured, held, or produced. The holding of product includes horticulture and livestock products. Other eligible properties include those in which business or research for said business is conducted.
These and other tax benefits can improve the financial gain of your business. Due to the requirements for eligibility for various tax credits and deductions for business owners, the best way to obtain the maximum gain without overstepping boundaries is to have taxes prepared by an experienced accounting firm. Whyte & Associates has been serving the Inland Empire and Rancho Cucamonga area for many years. We are happy to assist you in your payroll and tax needs. Call (909) 575-0080 today.