There’s still plenty of time before the tax deadline so there’ no better time to make sure you have all your tax strategies planned out. For a small business, you want to make sure you get the best tax return possible and there are certain things you can do to make sure that happens.
Being organized is an important part of running a small business. Part of being organized is keeping all your business receipts and invoices. At tax time this becomes especially important as you will be needing documentation for everything that you itemize. If your deductions are ever questioned, you’ll have the documentation to prove it.
Make sure you are aware of any health credits you can take advantage of. If you helped pay premiums for employee health insurance, there are tax breaks you can take advantage of. Tax credits are based on the number of full time employees you have and their average wages. Another advantage of health tax breaks is that they can be rolled over to next year if you don’t owe any taxes this year.
You may be able to take advantage of your property as another source of deduction. Things such as facilities used for business, computer software, buildings used for research and housing for livestock or horticultural products may all be deductible.
You may be running your business out of your home in which case you may be eligible for some deductions involving direct expenses, indirect expenses, interest and property taxes. Even if you only run your business from home some of the time you still may be eligible for some deductions.
Charity is always a good thing but there are ways of donating that can be worth more than others. If you donate stocks instead of money for example, you can write off the present value of the stock instead of what you bought them for.
With the new tax laws being recently enacted it is a good idea for any small business to seek the advice of a tax professional.