As a business owner, you want to make sure you are doing everything right when it comes time to file your tax return. Oftentimes, business owners don't take advantage of all the discounts and deductions that are available to them, leaving them having to pay far more in taxes than they should. With so many different deductions available, you want to make sure you aren't missing out. To help you maximize your savings, make sure you take advantage of the following discounts.
Home Office Deduction
Millions file their taxes every year, but only a fraction claim this deduction. With so many business owners having an office in their home, why would you not want to take advantage of the savings? Whether you are worried about an audit from claiming this deduction or you simply didn't know it was out there, you deserve to be compensated for having your office out of your home.
Claim things like your Internet service, utilities, phone service, office equipment, office supplies and more. Deductions are determined by taking the total cost of the deduction and multiplying it by the percentage of time you use it for business use versus personal use. Your accountant can go over all of the specifics with you, but the savings can add up pretty quickly.
Costs Associated with Starting Your Business
There are also deductions available before you ever open your doors to the public. If you paid money to explore different business ventures, you might be entitled to take a portion of that off your taxes during the first year your business is up and running. While there are limitations on how much you can deduct during your first year, there is an option to amortize your costs over a period of time to make sure you don't miss out on your deductions. Make sure to save your receipts to justify the amount of money spent on starting a business to get your maximum deduction.
Bad Debts
If you loaned money to a vendor, employee or someone else and are still waiting for them to pay you back, you might be entitled to deduct the loan as a loss on your return. Depending on what type of loan it was, it might fall under bad non-business debt or business debt. Your accountant can help you determine which category might be best.
By taking advantage of the deductions above, you can make sure your business expenses aren't more than necessary when it comes time to file your taxes. Contact a local accountant, like Wiggins, Smit, Burby, Reineke, & Company P.A., with any questions.
Share29 July 2015
Adoption is a beautiful thing. Raising a child someone else had is a completely unselfish act of love. Do you want to adopt a newborn in the near future but are afraid you won’t have the necessary funds to do so? Consider meeting with an experienced financial adviser. This professional can sit down with you and recommend viable fundraising options. For instance, you might want to take out a loan. Or you may wish to sign up for a grant. Obtaining a tax credit is also an alternative. On this blog, I hope you will discover effective tips to help you raise money for an upcoming adoption.