Learn the common mistakes small business owners make on their taxes that end up costing…
The end of Q4 -- and the 2019 tax year -- is now in sight. If you've been adhering to the principle that tax preparation is a full-time, year-round responsibility, then you're probably in excellent shape in terms of having all required records, receipts, and other important documentation organized and close at hand. However, if your usual method is to get all your documents and records together on April 11th, you may need some help. That's why our small business accountants in Raleigh are sharing some last minute tax tips to help reduce your tax liability and save time.
Tax Tips for Small Business Owners
As you get ready to do your taxes, apply some of these tips.
Know Your Deductions
Did you know you can deduct these small business expenses:
- Vehicle expenses and gasoline if you use your car for deliveries or work-related travel;
- Home office
- Professional services, including tax preparation costs or tax software;
- Office supplies
- Client and employee entertainment
Keeping receipts logged and organized will help you easily compile your deductions.
Leverage Your Retirement Fund
Make sure you're making the maximum allowable contribution to your retirement fund. For example, if you have an IRA, you can contribute up to $6,000 and deduct that from your taxes. If you are over 50, you can contribute $7,000. Additionally, consider setting up SEP IRAs or other pension plans for your employees.
Consider Your Hiring
If you hire people in specific populations, such as those receiving SSI or food stamps, or are a qualified veteran, you may receive Work Opportunity tax credits for your business (while also providing opportunities for vulnerable populations.)
Launch a Subsidiary or Website
If you're planning on expanding your business or going into ecommerce, you can write off up to $10,000 in startup expenses.
If you purchase furniture, equipment, vehicles, fixtures, or other qualifying property, report it now as a Section 179 expense rather than the depreciation of those items over several years.
These are just a few of the more wide-reaching tax breaks and credits that your small business may benefit from if minimum requirements are met before the end of the fiscal year. Positioning your company to take advantage of these incentives prior to December 31 can have a significant impact on your 2019 tax bill, so act now.
Call Our Small Business Accountants in Raleigh
We know that tax preparation for small businesses is complicated and time-consuming. Our CPAs are experienced and knowledgeable in how we can ensure accuracy while minimizing your tax liability to save you money. Schedule an appointment with a member of our team today and get the personalized tax advice and preparation you need by calling us at 919-420-0092 or fill out our contact form.