BUSINESS TAX PREPARATION
BUSINESS TAX PREPARATION
Are you getting your things together for your business tax preparation at the year end? Here are some tips that are bound to help you.
Business owners who do not have a long term of experience can make technical errors during business tax preparation. There are several confusions that you may face, as a new business owner. Here are some helpful tips on business tax preparation, that you may use for tax preparation.
- All about car deductions –One huge mistake that business owners make in their business tax preparation is that, when it comes to car deductions, they limit their deductions to mileage. You can also deduct other car expenses such as tires, gas and oil, insurance, tolls, lease payments and parking fees, once you prove that they are business expenses. People who work from home have to treat their ride from home to office or the return journey as deductible business driving. On the other hand, with people who work in the office, then it is treated as a non-deductible personal expense.
- Small things are also important- Tracking expenses for little things like magazines, comics, toys, educational classes and other things can add up really quick and they increase the expenses. These deductions are something that you should check with your tax advisor. Ask your tax preparer what you can add and what you cannot add. You must keep in mind not to exaggerate your deductions as that can raise the chances of an IRS audit. As a business owner who often takes business trips, you should remember that you cannot deduct the meal costs and travel expenses fully. You can deduct only parts of it. Apart from the IRS, there are several other tax obligations that you should take note of. You have to include excise tax, self-employment taxes, payroll, property and local taxes as well, in your business tax preparation.
- Keep your business and personal expenses separate- This will not only help you managing your business tax preparation but also make it faster and more accurate.
- Keep your bank statements gathered- For business tax preparation, you need to keep your documents all in one pace. Bank statements are required to keep a track of the expenses and the income that you have made in the entire year. In case you do not have organized records, bank statements will help you. Apart from that, you should also keep a record of day to day expenditures like gas, meals, parking, supplies and other things.
Accuracy GuaranteeOur online tax software gives you the most accurate return and the largest possible refund you are entitled to receive. If there is an error in the preparation of your return that results in penalties and interest, we will reimburse you for the associated penalty and interest initially assessed
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