Monday, September 30, 2013

Credit Card Tax Deductions for Small Businesses

One of the major problems that we usually meet when we decide to establish our own business is the financial support. Getting a business credit card is one of the ways in order to fund our own business. This is a less hassle way of getting funds compared to applying for a loan from banks. You also get to have many benefits like points, and many more that can help you develop your business. Having a business would mean that you are obliged to pay tax. This is where your credit card will be of big help. There are ways on how to determine your tax deductions.
Travel expenses and business meetings
When you go on a trip related to your business, you can always use your business credit card in paying your airline tickets as well as your hotel accommodation. Likewise, when you have business meetings with clients in restaurants, take advantage of your business credit card by paying your bills using it. With this, you can also earn rewards.
Business purchases
For sure, you will be spending so much for the materials that you will need for your business. This will be a good way to earn benefits aside from increasing your credit rating. In addition, any credit card purchase will be tax deductible. So make sure that you use your business credit card when purchasing even the smallest items that are related to your business.
Consumption costs
In line with having business, you also spend not just for materials but also for your consumptions such as electricity and internet connection. It is better to use your business credit card in paying these bills. In this way, you put more expenses that are tax-deductible on your credit card.
Employee benefits
When you have started to hire employees, their benefits, such as health insurance, are tax-deductible as well. This means that the more employees you have, the more tax-deductible expenses you get. You can even include employee's pension plan and retirement accounts.
Marketing and promotion
When you are selling products, you also need to do some marketing and promotion in order for the people to know about them. Of course, advertisements are a part of becoming successful with your business. All the materials needed for advertisements will also be tax deductible.

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Friday, September 27, 2013

Oct 15 Tax Deadline

If you asked for an extension to file your tax return, remember that the deadline is Oct.15. Learn more at

Tuesday, September 24, 2013

Small Business Health Care Tax Credit

Small employers who provide health insurance coverage to their employees may qualify for a special tax credit.

Saturday, September 21, 2013

Importance of Tax Service When Running Your Business

In running small business, it is very important to be able to take control of all the possible scenarios. You wouldn't want to get surprised by all the issues and problems lying around. One of the things you should worry about early on is looking into your books. It is very important for you to make sure that your bookkeeping and accounting is accurately and efficiently done.
A lot of preparation is needed to prevent errors and glitches from happening. One of the things you must do is to hire tax service, especially if you are not at all knowledgeable about finance. To keep these transactions in order, you should hire accountants for your business to run smoothly.
There are things you can't do by yourself. So instead of screwing everything up, it would be helpful if you just file all the documents needed and let the tax service providers do the work for you. This is definitely a cheaper alternative. Also, you wouldn't be subjecting yourself in tons of stress and headache when you know that these accounts can do this job easily. They are the masters of their field and they would be able to accommodate all your concerns, particularly if you have tax service issues.
While your accountant's at it, you can do other important things for other aspects of your business. This can save you a lot of time. At least, you will be able to deal with things you can get your hand on. This says a lot about your efficiency and your capability as a business head. Accounting involves a lot of tasks. Planning, returns, auditing, payroll and other fundamental services needs to be thorough procedures and business consultants can aid in easing the load off your shoulders.
Once you hire these consultants, it would lessen the risk of errors in your financial documenting and reporting. You would also reduce your exposure to these concerns. Finding the right accountant or accounting firm might be hard but it surely is an endeavor worth taking. The key is to give your trust when it comes to tax service, even if it is business or personal. Once you found someone you could entrust your finances with, just continue working with them. They can also introduce you to systems you can employ on your company.
There are also accounting software they might suggest to centralize each transaction. Keeping up with your bookkeeping needs might get messy for some time but as time goes by and your business expands, it would be more complex than before. Having tax service help would help you set everything up. By that time, you can also avoid having to bring your accounting work at home just to get everything done.

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Sunday, September 15, 2013

Small Business Tax Deductions

Small business tax deductions are implemented by the government to encourage entrepreneurship and investment. A business owner can save large amounts of money through these small business tax deductions. Special small business tax deductions are granted for home based business establishments.
Small business tax deductions are usually implemented on the expenses involved in the business. These expenses include office stationeries, advertisements, postage charges, shipping fees, telephone bills, and Internet charges. The receipts of each purchase should be produced while filing for the taxes. In case a business owner joins any franchise, expenses such as franchise fees and kits can be claimed as deduction. Even the gift items and freebies given to the customers are accounted as business expenses and thus attract small business tax deductions. Business owners usually have to face the problem of bounced checks received from customers. These checks along with the bank fees can be utilized for claiming tax deductions. The rules governing small business tax deductions have special provisions for business owners who have purchased computers. The business owner can claim for tax deduction in an amount equivalent to the cost of the computers. Additionally, he/she can claim depreciation for 3 years following the purchase of the computers.
The tax deductions largely depend on the type of business and the expenses that are involved. A business owner should ideally consult a professional tax advisor before filing for taxes. Taking the business structure into consideration, the tax advisor would be able to give the best suggestions regarding small business tax deductions. He/she can also help the owner adjust the income so as to attract the maximum deductions. Small business tax deductions thus help in avoid paying high taxes, which in turn helps in the growth of the business.

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Thursday, September 12, 2013

10 Tax Deductions For a Small Business

Almost 90% of small business owners overpay the IRS each year - do you want to belong to this category? We guess not! There are a number of tax deductions for a small business to take advantage of, and help save them money. Here are the top 10:
1. Auto expenses: If you use your car for business, or your business owns its own vehicle, you can deduct some of the costs of usage. If your automobile is used for both business and pleasure, only the work related usage of the vehicle entitles the business to a tax deduction. That means you must keep track of how often you use the vehicle for business, and add it all up at the end of the year.
2. Education expenses: Expense incurred on education, related to your current business, trade or occupation is another cost that can count towards tax deductions for a small business. Of course, there are strict guidelines to be followed - the expense must be to maintain or improve skills required in your present career and must be undertaken during the course of your job.
3. Legal and professional fees: Fees paid to lawyers, tax professionals or consultants generally can be deducted in the year in which they are incurred.
4. Business entertaining: If you pick up the tab for entertaining present or prospective customers, you may deduct 50% of the cost, while calculating taxes. This should be directly related to or associated with the business, and the entertainment must take place immediately before or after a business discussion. Remember to write down the purpose of the event on the receipt or bill.
5. Travel: Travel costs also count towards tax deductions for a small business. If you travel on business, you can deduct most of the expenses including the cost of air fare, car rentals, taxis, lodging, meals, shipping of business materials, telephone calls, faxes and tips. But if you take your family along, remember, you can only deduct your own expenses.
6. New equipment: Some small businesses can write off the full cost of assets in the year in which they are bought. You can deduct up to $108,000 for a single piece of equipment or from the cost of various items as long as the equipment is placed in service before the end of the year.
7. Interest on loans: The interest and carrying charges on business loans are fully tax-deductible. Be sure to keep good records showing that the money was really put into your business.
8. Moving expenses: If you move because of your business or job, you may be able to deduct
certain moving costs that would otherwise be non-deductible personal living expenses.
9. Charitable contributions: Here's an expense that serves two good purposes. Charitable contributions are allowed as tax deductions for a small business. When your business makes a donation, claim a deduction on the tax return.
10. Advertising: The cost of advertising your goods or services is also deductible as a current expense.
Finally, keep an eye open for the latest on tax deductions for a small business, since laws do undergo changes. Even more important is to ensure that your financial records are maintained well.

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Monday, September 9, 2013

Charitable Contributions

If you've made any donations to charity this year, you'll want to learn some important rules about deducting charitable contributions on your tax return.

Friday, September 6, 2013

Tackle Back Tax Problems Today

Keeping your finances in order is tricky even for the most capable among us. Mistakes happen, and sometimes those mistakes end up manifesting as tax problems. Tax problems are not issues that will go away on their own. When you owe the IRS money, that debt will simply keep growing until you deal with it. The good news is, there are tax resolution professionals who specialize in helping you get your IRS situation straightened out, and they are available to help you year-round. Don't wait until next spring to think about your tax issues. Call your local tax resolution firm today to find out how you can square up with the IRS in a way that works for you.
Tax debt is serious business. If you owe the IRS back taxes, you are automatically charged interest on the amount you owe. This quickly increases your debt and can change a small financial issue into a big one in a short amount of time. Depending on your situation, you may also be assessed tax penalties as well. Eventually, if you fail to pay the money you owe to the IRS, they have the authority to take it from you.
The IRS can garnish your wages in order to satisfy your tax debt. They can also enact tax liens and levies, meaning that they can seize your assets in order to claim the money that you owe them. This means that if you fail to settle your tax debt, you run the risk of losing your property, including real estate, vehicles, and even bank accounts. This is why it is vital to resolve back tax issues as soon as you can. You may only have to file taxes once a year, but, if you owe back taxes, you will face mounting penalties and interest all year long until you settle your debt.
If you owe back taxes and you are ready to get your situation resolved, a tax settlement professional can help. These tax experts have the knowledge and the experience to help you navigate your tax situation so that you can get your financial future back on track. Most importantly, your tax resolution pro can help you negotiate with the IRS so that you can repay your tax debt in a way that works for you. If you owe more than you are able to pay, you may be eligible for an offer in compromise, which is an agreement between you and the IRS to settle up for less than the total amount that you owe based on your specific financial situation. If you are facing mounting tax penalties but have a legitimate reason for filing late, you may qualify for penalty abatement. And, if you have incurred unfair tax debt through tax information that your spouse filed, you may be eligible for innocent spouse relief. A tax resolution professional can help you determine if any of these, or other, tax relief options are right for you, and can help you pursue them. Don't get saddled with tax debt or tax liens unnecessarily. Get tax help now so that you can start next year with a clean slate.
If you owe back tax debts to the IRS, don't ignore them. Call your local tax resolution professional today to get tax relief that you can count on.

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Tuesday, September 3, 2013

Important Deductions For Small Businesses

For all the hard work that goes into running a small business, there are some distinct rewards that come from it as well. Not only is the work rewarding but small businesses owners can also take advantage of tax deductions not available to individuals. Let's look at some of the most common tax deductions available for small businesses.
Virtual Assistant
Your virtual assistant is completely tax deductible as a business expense - and the best part is that you don't have the hassle of handling payroll and figuring out with holdings and benefits - your virtual assistant takes care of all of that.
Home Office
The home office deduction is the most basic deduction that small businesses may claim. This deduction is to be used when there is an area in the home that is used ONLY as a business office. If the area is used for any other purpose in addition to an office, you cannot claim the deduction. The home office deduction has been controversial lately because it has earned the reputation for triggering IRS audits. However, this rumor is completely unfounded and any small business with an office in the home should claim this deduction without the fear of an audit. Since the amount of the deduction is based on the percentage of the home used for the home office, you need to know the entire square footage of the home as well as the square footage of the room used for the office.
Supplies and Equipment
All of the office supplies and equipment that are purchased for the business are also tax deductible. Who knew paperclips could be so valuable? Each time you go out for more printer paper, sticky notes, pens, etc., you should save your receipts because these expenditures offset the taxable income of your business.
Office equipment may also be deducted. Computers, printers, fax machines, even your cell phone or PDA are deductible if used for business. Equipment deductions can be claimed at 100 percent all in one year or may be depreciated over a period of five years.
Any office or business needs furniture. Luckily when you buy that computer desk or office chair, you can deduct it from your taxes. Furniture is also deductible at 100 percent in one year or it can be depreciated over 7 years. To deduct it all at once, a special form (Section 179) must be used. Depreciation is a little more involved because each individual piece of furniture has a different depreciation schedule. For example, the file cabinet has a different depreciation value for the year than the conference table. The conference table value is different from the lobby chairs and so on.
A Virtual Assistant can help you sort through receipts, categorize expenses and enter data in to an accounting program or spreadsheet to make your tax preparation easier. Consider a virtual assistant throughout the year to avoid long hours during crunch time.
It will probably pay off to consult with a tax professional to make sure that your small business receives every deduction to which it is entitled

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