#13 Conducting business from home If you conduct business from your home, become familiar with the rules for home office deductions. Accurate records may preserve your deductions. ‘Tis the Season to start Tax Planning Call us today to get started. (305) 477-5671
#12 Classify your employees proper Do not subject yourself to tax penalties by misclassifying an employee as an independent contractor. The IRS is aware that employers prefer to treat workers as independent contractors to avoid paying fringe benefits and payroll taxes. If you are not absolutely sure how to treat a given worker, contact us.…
#11 Take a write-off for business equipment Most business equipment is depreciated over five or seven years. However, small business are allowed to expense certain amount of equipment cost in the year of purchase. ‘Tis the Season to start Tax Planning Call us today to get started. (305) 477-5671
#10 Review your employee benefits package Fringe benefits can help increase job satisfaction and performance which results in attracting and retaining employees. There is a wide variety of fringe benefits that employers can choose to offer and some are even specifically excluded from employees' taxable income. ‘Tis the Season to start Tax Planning Call us…
#9 Keep all business travel, meals, and entertainment expenses records Travel that you do in conjunction with your business is deductible, but business meals and entertainment expenses are generally only partially deductible. ‘Tis the Season to start Tax Planning Call us today to get started. (305) 477-5671
#8 Never use the Internal Revenue Service as your banker When cash flow is tight, you may be tempted to pay your suppliers first and payroll taxes to the IRS last. The IRS will take steps to minimize the liability as quickly as possible. Pay the IRS first. If you absolutely cannot, contact your local…
#7 Hire your children to work in your business Wages paid will be deductible by your company and taxable to the family member. Your child’s earnings will probably fall in a lower tax bracket than yours. Payroll taxes apply to such wages; however, if your business is a proprietorship or family partnership, they do not…
#6 Cash Vs Accrual Consider using the cash method of accounting if you meet the qualifications. Under the cash method, you generally report income to the IRS in the year you receive payment from customers. Under the accrual method, your report income when a sale is made to a customer regardless of when the bill…
#5 Tax and Asset Protection If your business is incorporated, it is often a good idea for you to separate ownership of the business real estate and lease it to your corporation. There are a number of tax and non-tax concerns relating to real estate ownership. See us before you acquire new business property or…
#4 Keep your Corporate Blackbook up to date If you operate a business entity, keep accurate and thorough minutes for the corporation. Minutes should document transfer of funds or assets into or out of the corporation, officers’ salaries, shareholder dividends, officer and employers benefits, and related party transactions that might be scrutinized by the IRS.…
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