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Five Tax Tips For Business Owners
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For business owners, there are many tax considerations which have to be made when filing your yearly income tax return schedule. The process of filing a tax return, for business owners, should be a straightforward process, and done in the simplest terms. The following are a few tips which should help business owners in filing a return to maximize gains, and avoid any penalties.
1. Consider “DIY” Tax Services: many small business owners consider filing online rather than with an accountant. Today, there are tons of filing software available to all individuals online. If the business has a very basic tax schedule and qualify to file EZ forms with the IRS, an online option might be a good choice for your business. If your business is more complex, you should consider a personal accounting firm to assist you with filing.
2. Consider Limited Services of an Accountant: Some individuals don’t want to deal with filing on their own, yet don’t want to rely on an accountant entirely. For these businesses, use online software which allows you to prepare the forms yourself. Once completed take the forms, and business receipts to an accountant to check for errors or missed deductions. This will save some money and the stress of filing the forms incorrectly.
3. Keep Track of Traveling Expenses: Use a mileage log. This will allow you to seperate the travel and gas expenses for business vs personal purposes. Business expenses can be taken as deductions on your tax return.
4. Keep Your Receipts: In the event of an audit, business receipts will save you headache and possible penalties. This will also make filing deductions faster, and assures that you can back up all claims to the IRS. If you are a small business, consider using separate credit cards for business vs personal expenses.
5. Know Your Deductions: If you know what can be deducted, it saves businesses the time and hassle of going through all accounts.
These basic tips will help keep you safe in the event of an audit, save you money, and optimize your deductions and returns when filing your businesses tax return.
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Abdallah B. is a former diplomat and prolific entrepreneur, he enjoys writing and collecting stamps.
