While you have still got several weeks before the end of the year — and therefore the end of the tax year — now is a good time to think about your tax deductions and make sure that you maximize your business expenses to benefit when you file your taxes Every expense you invest in your business can be an expense that helps you reduce your taxable income. That’s why it’s important to make sure that you max out your tax deductions before the end of 2015.
What is Tax Deductible?
If you’re new to filing small business taxes, you not might not be sure what expenses qualify as deductible ones on your tax return.
Essentially anything that you use to grow your business, including advertising, office equipment, software, and payroll, are considered business expenses that you need to list on your taxes come April.
Don’t overlook your home office if you work from home. The IRS allows deductions based on a calculation that takes the size of your home office into account, as well as your rent or mortgage.
In this post, you can learn about some other commonly overlooked tax deductions.
Why to Consider an Accountant
You may think you can wait until next April to hire an accountant, but it might be a good idea to talk to one now to make sure you understand all of the tax deductions you might be forgetting about. If, for example, your accountant points out that you can take a deduction for office furniture, you can budget some extra expenses toward outfitting your office before the end of the year.
Knowing what deductions are available to you can help you figure out where you need to put money before the end of the year. If you know that you need a new computer, waiting until January to buy it isn’t going to help you reduce your taxable income for 2015.
Planning Year ‘Round for your Tax Deductions
Don’t wait until the end of the year to figure out where you need to spend additional money to take advantage of business tax deductions. Now that you know what tax deductions there are available to you, you can set your budget throughout the year to ensure that you are investing in the tools, resources, training, and other assets that will help you grow your business. If you spread these expenses out through each quarter of the year, you won’t be burdened with the pressure of trying to spend more money at the end of the year in order to maximize the tax deductions in April.
Incorporating a Business and forming an LLC can both affect your tax situation. Talk to a small business expert at CorpNet to find out how.