Tax Planning Strategies for Your Small Business .pdf
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Tax Planning Strategies for Your Small Business
When you are running a small business, there are a lot of things that you need to keep in mind. You are running the whole business on your
own and trying to keep your expenses down as much as possible. One of the areas where you can save money is on your yearly taxes.
While there are a lot of tax planning strategies that you can use to save money, you will need to check with your tax professional to see
what options will work the best for you. Some of the alternate ways that you can save on the taxes your business has to pay include:
Maximizing the entertainment expenses
The IRS is going to allow you to deduct some of the entertainment expenses that you incur during the year. These expenses are often
deductible because you use them to keep the business up and to run. These expenses are going to help you to save money when you are
ready for the tax season.
You must meet certain circumstances when it comes to deducting entertainment expenses. For example, you cannot deduct your kids'
birthday party as an expense without raising the ire of the IRS. But you can deduct a lunch meeting with a potential client if you would like.
You might want to talk to your tax professional to determine which expenses you can deduct for your business.
In most cases, you need to discuss something about the business either during, before, or after the event. You also need to have a
surrounding that will allow business to occur. A small and quiet restaurant will work well for this kind of cause. Anything that has floor shows
or something that is distracting will not count. You can receive a maximum of 50 percent on your entertainment expenses, but you must have
the proper documentation to qualify
You can receive a deduction based on some miles that you take in the year that you can relate to your business. This deduction can help you
out if you travel a lot for your business to meet customers. When you are doing your tax planning for the year, you should keep track of all
the miles you travel for business. Of course, you cannot use your personal mileage to get the deduction.
If you are traveling for business reasons, you will get a rate of 36 cents for each mile. If you are traveling for charitable reasons, you will be
able to get 14 cents for each mile. Make sure to keep all of your receipts and bring them into your tax professional if you would like to receive
this dedication. With the price of gas, this deduction can help you out when tax season comes.
Work from home
Working from home can help you to get some more deductions if you can go through the difficult parts that the IRS sets up. There are still a
lot of good advantages that come with working from home and having a home office, that it is worth your time. You need to follow a few tips
to get this tax deduction. You should try to have the address and your phone number on your business cards and then have guests sign in
with a guest book when they come to visit. You can also deduct any phone charges that you have and keep a log of the work and the time
you spend on work while you are in the office.
Talk to your tax professional to see what other steps you must use to get a deduction for using your home as a place of business. The tax
professional will be able to look over your documents and situation to get you the biggest dedication to the small business.
For all of your tax needs, Contact GLG Accounting. They have all of the resources to look at your unique case and give you the help that
you need to take care of your taxes.