Post on 11-Aug-2014
description
Small Business Owners Can
25 Ways
Save OnTaxes
Everyone wants to save on taxes!
If you’re a small business owner, you may have more ways to save on taxes than most people. You want to make sure that your business is paying for all your business expenses.
Lower your company’s profits and result in a lower tax bill for you or your company.
Business expenses
If you’re paying for an expense with your personal money, the tax man has already gotten his share.
On the other hand
Before you act on any ideas in this presentation please consult your tax professional!
1 File on time
IRS late filing fees are substantial and can add up quickly.
2Ask for an exception
If you do file late. The IRS will normally waive penalties for you one time.
Deductions
3Take advantage of deductions
For business travel and entertainment expenses.
Tip from bizfilings.com
3Take advantage of deductions
For business travel and entertainment expenses.
Tip from bizfilings.com
4Use airline miles
For personal travel and not business travel, when you have the choice. ou can deduct business travel expenses.
Tip from David Kelsey of KelseyMedia.com
5Have lunch meetings.
When you dine with your employees or business partners, 50% of the cost is deductible, so long as they are not lavish or extravagant expenses. Tip from Kaitlin M. Newkirk of
BarnesDennig.com
6Deduct the business use of your car
Tip from 1040.com
7 CellphoneDeduct your business cellphone use. If you use the same phone for business and personal calls, you can still deduct the business use portion of your bill. More on this here. Tip from Intuit Turbotax
8!
Section 179 Deduction
Take advantage of section 179 deduction.Tip from CPAPracticeAdvisor.com
8!
Section 179 Deduction
Take advantage of section 179 deduction.Tip from CPAPracticeAdvisor.com
9Deduct your moving expenses
If you move more than 50 miles from your current location for business reasons you can deduct the expenses. Learn more here. Tip from WorldwideERC.org
10Take the home office deduction
Tip from FitSmallBusiness.com
10Take the home office deduction
Tip from FitSmallBusiness.com
11 InsuranceInsurance - Have your company pay for your health care premiums. Learn how here. Tip from MoneyCrashers.com
12Keep your personal and business finances separate
This simplifies things and makes it less likely that you will miss out on expenses that can be deducted.Tip from Kat Simpson at outright.com
13 smartphone appUse the free smartphone app Expensify to keep track of business expenses and receipts so you don’t miss any. Tip from BradleyGauthier.com
Hiring
14 independent contractors
Use independent contractors instead of employees. There are no payroll taxes with independent contractors. Tip from Marla Harding at SmallBizSource.org
14 independent contractors
Use independent contractors instead of employees. There are no payroll taxes with independent contractors. Tip from Marla Harding at SmallBizSource.org
15 Hire your children
To do odd jobs for your business instead of paying them an allowance. You can deduct the cost of their salaries.Tip from Donna Laubscher of Henry & Horne LLP
16 Hire an unemployed veteran
Hire an unemployed veteran and get the work opportunity tax credit. Tip from military.com
Doing Taxes
17 using turbotax
Do your taxes yourself using turbotax. If you’re a one person business, it might make sense to do your own taxes.Tip from Josh Smith at dailyfinance.com
18 accounting software
Use accounting software to record revenues and expenses. This will save you tons of time when filing your taxes, and time is money. Read our accounting software buyer’s guide here. Tip from FitSmallBusiness.com
Business Structure
19 Choose the right state
Choose the right state to incorporate in. Tip from companiesinc.com
20 businessstructure
Choose the right business structure. How your business is structured from a legal standpoint can have a major impact on your year end tax bill.
20 businessstructure
Choose the right business structure. How your business is structured from a legal standpoint can have a major impact on your year end tax bill.
21 umbrella company
If you own multiple businesses, consider creating an umbrella company. This can simplify the filing process and allow you to offset profits in one business with losses in another.Tip from Annie Meuller of investopedia.com
Manage The Timing of Business Purchases
22 revenues and expenses
Manage your year end revenues and expenses. If you have had a big year, lower this year’s taxable income by moving up purchases you were planning on making the following year. Tip from Joseph Steinberg of Green Armor Solutions
23 additional benefits
Offer employees additional benefits instead of higher salaries or bonuses. This saves you payroll taxes and you can deduct the cost of many benefits.Tip by Christina Merher of ZaneBenifits.com
24 retirement account
Put money into a retirement account. Learn how to choose the right retirement plan for your business here.Tip from Robert Berger at DoughRoller.com
Oops!We only have 24 tipsplease help us find tip number 25. Leave a comment below.
Click here to tweet this presentation.
Join The Community:
www.FitSmallBusiness.com
See the full article here