Tax Topics Business Owners Need to Know
Being the owner of a small business can be very rewarding, but very challenging at the same time. One of the biggest challenges small business owners face is dealing with taxes. There are countless items to keep track of and monitor with small business taxes, but these are some of the most important issues to be aware of.
As an owner of a small business you should constantly be looking out for deductions. You can deduct start-up expenses, including up to $5,000 worth of certain kinds of expenses if they took place the year before. You can also deduct any car mileage that you use to conduct your business, if you use your home as a place of business.
Business travel expenses are another good source of deductions for small business owners. Any “ordinary and necessary” expenses can be eligible, which typically include lodging, transportation, laundry, baggage charges and even hospitality tips. If you are gone over night you can also deduct meals but only up to 50 percent. You cannot deduct clothing expenses even if you purchase them for work and use them exclusively for work.
Lastly, if you own a small business you need to be aware how the Affordable Care Act affects your taxes. There are all kinds of limits and restrictions but you might qualify for the small business health care tax credit if you pay at least half of your employee’s premiums and you employ no more than 24 full-time and equivalent employees who have an average annual income of less than $50,000.
Of course, if you’re a small business owner the easiest way to deal with your taxes is to hire an experienced and professional tax preparer like GROCO. Give us a call at 1-877-CPA-2006, or click here to learn how we can help you.
Huge Decisions Loom for Lawmakers on Obamacare Taxes
One of the biggest calling cards of the Republican Party for the last several years, including President Donald Trump, has been to repeal the Affordable Care Act, also known as Obamacare. Although Obamacare has faced much opposition throughout its existence, recent polls suggest that most Americans don’t want it repealed, especially if there is…
Taxes: DIY or Hire a Professional?
Are you struggling with that ever-so-common question at this time of year: When will the sun come out again so I can play golf? Not that question. This one: Should I do my taxes myself or hire a professional? This is a very important question because the consequences of your choice can be significant.…
How to Avoid Capital Gains Taxes
For many of the nation’s high net worth individuals, much of their wealth comes from capital gains. Capital gains are better than income because they are taxed at a much lower percentage than other income. While capital gains taxes could be going down under the Trump administration, it still pays to know every trick…
When Should You Receive Your Tax Refund?
The top question on everyone’s mind at tax season is when will get my refund? After all, that’s the only incentive people really have to do their taxes. The problem is the answer is never set in stone. Despite claims from the IRS that just about everyone should receive their refund within 21 days…