Happy Friday all,
Last night I had the honor of listening to a young woman discuss tax breaks for small business owners and I thought that it would make a great blog topic.
90% of tax deductions applies to business owners. There’s a lot of deductions that business owners should take advantage of. She made mention that she had a home in one state and an apartment in New Jersey that was used for business and the rent expense was a complete tax write-off. Very Impressive!
Tax Refund Defined-Money that you are receiving back for overpaying the government.
The government defines business expenses as the pursuit with the intent to make a profit. For example: networking events, traveling, promotion etc..
Examples of tax write-offs includes:
*Electronics (cell phones, laptop, desktop computer, iPad)
*mileage reimbursement (.54 per mile)
*home office expenses
*meals provided for clients
*promotion (advertising expenses, business cards, photos)
*Rental fees (office, equipment, utilities, etc…
The IRS can audit tax dating back 3 years. For example its 2019 they can go back to 2016. With that being said, it’s imperative to keep track of your business expenses. You don’t have to be an accountant to do so. You can invest in software (also a tax- deduction) such as quick books http://www.quickbooks.com. If you don’t have time, hire an accountant.
Be sure to keep track of all of your expenses in case you are audited. This includes receipts, mileage sheets, whatever documentation that you have. Be sure to keep your personal finances and business dealings separate. You can do this by getting a bank account for your business.
My Recommendation: START A BUSINESS
Obtain an tax ID (EIN #) for your business. You can do that on the IRS.gov site and complete form SS-4. I can help you with that if you need it.
I hope that this was informative. This info is all free, all I ask is that you share this information with all small owners.
Until next time……..