The end of the year is coming. Of course, that means Thanksgiving and eventually, Christmas, Hanukkah and those we hope are happy times. But it also means that it is the close of the corporate fiscal year (for most companies, that is). And that means making considerations for your taxes.
If you have excess income, it might be a good idea to come up with a strategy on how you might want to use it before the fiscal year comes to a close with business tax write-offs. Check out our tax form processing services – which are yet another tax deduction!
Your income bracket might be a little bit higher than you’d hoped for, which may signal a need to change things up. The IRS loves healthy financial statements for them! And if you’ve printed all your receipts and they don’t do much to help, it may be time for you to consider what to do over the course of the next 45 days this list of itemized deductions.
So what can you do to temper your income a little bit and relieve tax frustrations?
List of Tax Write-offs
Give a Little (or a lot): The Holiday season is the perfect opportunity to donate to various charities. You might want to check with your accountant to find out if there is a hard cap on that, or if he or she suggests a limit. All the same, there are lots of wonderful charity opportunities out there for you to indulge in. Just make sure you keep your receipts.
Pay Services Now: If you have an attorney or web host or any type of service that bills you monthly when December comes around, you might see if you can settle up any “net 30” payments owed. Often times these end up being paid in January which won’t help you until the following year. Services love to get paid early so it is a win-win!
Open a Retirement Plan: A Traditional IRA is a great retirement plan. Additionally, the funding, which often is up to $5,500 a year, is tax deductible (please check with your accountant on this). Of course, the taxes will be due when you withdraw the money at 59.5 or whenever you can, but for now, it unloads quite a bit of income for you!
Buy Last Minute Tech Needs: Need a new laptop or iPhone or hard drive? Go splurge. Get it before December 31 and you will be able to write it off against your income. And hey, who doesn’t love a new laptop?
Taxes aren’t fun. But you can make them a little better with some simple maneuvers called tax write-offs.
Your small business means the world to you, but guess what? The Taxman is knocking at the door, and he has his good friend 1099 hanging out with him ready to mingle and make your party miserable.
But the party doesn’t have to be miserable, because running a small business means lots and lots of deductions are coming your way. Let’s have a look at 8 solid small business tax deductions and tax write-offs.
1) Your home office: Come on now, even if you rent or own, you can calculate the space used for a home office and submit that as a deduction! Just because you don’t have a big fancy office doesn’t mean you aren’t entitled to a tax deduction of some amount. Check with your accountant on how to determine the percentage of rent or mortgage.
2) Furniture: You sit in something, right? Got a desk? Maybe a lamp? I doubt your using candles to the light the room, but if you are, hey, keep those candle receipts! Any furniture used for business purposes is likely something that can be deducted.
3) Miles on car: Yeah, you drive to Staples. You drive to see clients. You drive to acquire more customers. Write off your mileage.
4) Travel: You stay in hotels when you attend conventions? Do you buy a badge to the convention? Do you eat? These things add up and can often time be used as small business deductions.
5) Phone: You use your smartphone for business, so why not deduct it from your taxes? Smartphones which include texting and data plans are incredibly essential to most any small business so you should look into the option of deducting this expense.
6) Retirement: You contribute to your retirement? You should definitely talk to your accountant about this and maybe do some research on your own. There are lots of deductions that could be found here.
7) Insurance: If you pay premiums for the business, you should really look into this.
8) Contractors: If you pay contractors for design work, website development, internal networking or even to paint the doors a new fancy color, you should be able to deduct that from your taxes.
Taxes suck. But when the tax man comes. Sorry for the fragmented sentence, that’s really all he does, is come and then you have to pay him. But there is a light at the end of the bank account decimating tunnel:
Write offs. That’s right, running a business and contributing to society costs you money. So you shouldn’t have to pay taxes on the money you spend running your business (disclaimer: talk to your accountant about this).
So what type of items can a business owner or professional write-off their taxes?
Yes! If you use the Internet to conduct business and you probably do, then you can likely write it off. Whether you pay for it through a monthly service provider or you use it while traveling on a plane or at Starbucks, so long as you were using it for work, you are solid.
Moving for work can incur a ton of expenses, many of which can be written off. Hotels, gas, and food to some degree.
Do you travel for business and you do not receive reimbursements? A fantastic write off right under your nose.
Memberships and Education.
If it relates to a subject that you deal with at work, or maybe even a part of a new endeavor, then it can be written off. Many online sources now charge for education, if you partook in one, say, to learn Excel or to learn HTML, you can probably write this expense off. Education is a huge part of you and your business!
Hosting and Domains.
Did you buy your own name.com to put up your resume on? Or did you come up with a cool idea and grab a domain? Did you also pick up hosting as an add-on? A domain and hosting is the needed infrastructure for any business or professional presence. Write it off folks.
Obviously, do your research and it is always best to ask your accountant. But know your allowances and tax write-offs and use this tax-deductible expenses list wisely. Have a happier tax season and use our 1099 services mailing.
Now is the time to sign up for our 1099 processing tax service.