In the United States, tax season is just around the corner. Although Randall Dang is an accountant from Canada, he understands that small business owners in the United States might feel overwhelmed around this time of year as they get their paperwork in order to file their taxes.
Filing taxes for a business is much more cumbersome than filing taxes for a household, but going through that paperwork and reading that fine print can be worth it in the end if it helps you save a few more bucks. If you are new to filing taxes for your business or you would like a quick reminder crash course, here are several things to keep in mind:
Hire a Tax Accountant: If you are uncomfortable filing your business taxes, it can actually save you a little money to hire a tax accountant like Randall Dang as a tax accountant can spot potential deductions and credits that you might not be aware of. In addition to that, he or she can help you avoid an audit, which can result in fines and penalties if there is any evasion found.
You Can Deduct Expenses for Home Office: There’s a myth out there that a home office deduction will lead to an audit. This couldn’t be further from the truth. However, you have to use the term home office as the IRS would use it. You can’t use a home office deduction if you are laying on the couch on your laptop. You need to completely devote a space in your home to your business for it to count.
Keep Extensive Records When You’re Traveling: The IRS likes proof. It also wants to give you money for your business travels, but only if you can provide records. Every time you travel for business purposes, be sure to record the mileage, toll and parking expenses, and the purposes of the trip. At the end of year, you can add it up and see a nice deduction.