Taxes are something we should always be thinking of. There’s still plenty of time before the tax deadline so now is a good time to make sure you have all your tax strategies planned out. As a small business, owner, it is in your best interest to make sure you get the best tax return possible and there are certain strategies you can use to make sure that happens.
Being organized is an important part of running a small business. Organization means keeping all your business receipts and invoices. This is especially important when tax time comes around and you will be needing documentation for everything that you itemize. On rare occasions your deductions may be questioned and if they ever are, you’ll have the documentation to prove it.
Make sure you know about any health credits you can take advantage of. If you helped pay premiums for employee health insurance, there are tax breaks you can take advantage of. These tax credits are based on the number of full-time employees you have and their average wages. Health tax breaks can be rolled over to next year if you don’t owe any taxes this year.
If you own your property it may be used as another source of deduction that you may be able to take advantage of. Things such as facilities used for business, computer software, buildings used for research and housing for livestock or horticultural products may all be deductible.
A home business may be eligible for some deductions involving direct expenses, indirect expenses, interest and property taxes. Even if you only run your business from home some of the time you still may be eligible for some deductions.
Donating to charity is always a good thing but there are ways of donating that can be worth more than others. As an example, donating stocks instead of money you can write off the present value of the stock instead of what you bought them for.
Because of the new tax laws being recently enacted it is a good idea for any small business to seek the advice of a tax professional.