Small Business Tips To Help You File Your Taxes
Filing your taxes can be stressful enough, but add a business to the mix and it can be completely overwhelming. The tax laws, deductions and rules you have to follow when filing your taxes can be difficult to navigate, so hiring an accountant will definitely help. See below for some tips to help you prepare when filing your small business taxes.
If you run your business out of your home, you could qualify for some deductions. You may be able to deduct a portion of your mortgage if you have a room in your home that you use solely for your business. It cannot be a room that you use only part of the time for your business, and you can't use your couch as your office. You may also be able to deduct some of your utilities, phone service, internet service or even a portion of your homeowner's insurance.
You could also deduct your car if it's used for your business, as well as mileage. Be sure to keep receipts and write down your mileage when being used for your business. The car's loan interest and depreciation may also be used for a deduction.
Any classes or continued education for your business may also qualify for a deduction. Keep all receipts for these courses and for classes taken. Seminars that you attend may also qualify for a deduction.
Supplies And Equipment
Supplies purchased for the business may also qualify for a deduction, as well as technological equipment or furniture you have purchased. Keep receipts for all purchases made for the company and keep them in a file together. Even if you aren't sure if they qualify as a deduction, keep those receipts, it's better to be safe than sorry. You can go through the receipts with your accountant to be sure.
Even as a small business, you may have made a donation here and there, or sponsored a local team in your community. No matter the donation, big or small, it may qualify as a deduction. Be sure to keep these receipts as well.
Filing your taxes as a small business can be difficult to navigate on your own. Be sure to make an appointment with a small business tax accountant to have your taxes filed by a professional to help you figure out the tax laws for you and to get you all of the deductions you may qualify for.