As a small business owner, your life is hectic. There is no denying that you have a lot on your plate managing your employees, customers, and everything in between. Therefore, you need a strategy to make small business tax prep a bit easier when tax season comes along.
The great thing about choosing a new tax strategy is that you can pick one that better suits your business. So whether you have a limited liability company (LLC), sole proprietorship, corporation, S corporation, or partnership, picking a strategy tailored to your company can maximize deductions and credits.
Deductions
You can deduct many purchases from your business that you may not be aware of. For example, the section 179 property deduction includes up to one million dollars of eligible business property. If you have moved locations or expanded your business physically, this is a significant deduction for you. In addition, even if you work out of your home, you can deduct expenses such as utilities, supplies, mortgage, and insurance.
Any funds spent on transportation, such as business trips and work vehicles can be deducted.
Charitable contributions conducted by the business are eligible for deduction only if your business is not an LLC, S-corporation, partnership, or sole proprietor. This can be claimed as an itemized deduction on Tax Form 1040, Schedule A.
You may be missing a ton of miscellaneous purchases that you can deduct during the year. As long as the business purchases them, items such as newspapers, magazines, and other supplies and materials count as deductible expenses.
So, valued business owners, your small business tax preparation doesn’t have to be as dreadful as you are anticipating. And, more good news is that you do not have to go in it alone. As you know, building your business wasn’t achieved entirely by yourself. You had other people along for the ride to cheer you on, such as family, friends, mentors, and trusted coworkers to offer ideas and comfort you when something didn’t go according to plan. So as you head into tax season, don’t go in it alone. Instead, find a trustworthy CPA, like those on staff at InSite CPAs, to walk alongside you and point your business in the right direction.
There are so many more deductibles your business may be eligible for. If you still need clarity on all of this tax speak, talk to the tax preparers at InSite CPAs. They can offer you clarity and reassurance during this stressful time and help to point you in the right direction. Small business tax prep is within your reach. Head over to InSite CPAs to get started in the right direction.