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If you operate a small business, there are several small business tax questions you should ask yourself. These questions will help you stay current with federal, and state income taxes. Many of the things that you do in a small business can affect the taxes that you pay, so paying special attention to some of the questions can help you by saving money, or getting more back.
What Is a Small Business Deduction?
The small business deduction is generally defined as a deduction for anything that is ordinary, necessary, or reasonable in expenses for a small business can be used as a deduction.
Questions about Small Business Deductions
Can I deduct my travel expenses?
By using a standard mileage rate of .55 per mile, you can deduct any use of your car for business use.
How can I make a home office deduction?
When you work at home you can deduct a certain portion of your rent or mortgage, as well as other utility costs, on your small business tax return.
What Should I Do When Starting My Small Business?
First and foremost, the most important part of operating a small business is to keep good records. By all accounts, the majority of tax problems are caused not by withholding information but by keeping bad records. Immediately organize all your business related activities so that you know where everything is. All checks, receipts, and expenses should be filed and kept on record.
Should I Keep My Own Books?
Unless you are an experienced accountant, you might want to think hard about this one. There is software available, like Quicken or Quickbooks, but to stay on the right track, it is a good idea to have a small business advisor look over your information to ensure everything is right.
Do You Need to Hire?
Some jobs in your small business will require you hire a new employee for a temporary period. Since this new employee will be under your responsibility, he or she is considered employee and should be filed as such. If you label an employee as an independent contractors, you could find yourself looking at an IRS audit of your business.
Small business tax questions are easily answered by any professional tax accountant. When starting your own business ask yourself these questions to make sure your small business starts off on the right foot and has a long term success rate.
What Is a Small Business Deduction?
The small business deduction is generally defined as a deduction for anything that is ordinary, necessary, or reasonable in expenses for a small business can be used as a deduction.
Questions about Small Business Deductions
Can I deduct my travel expenses?
By using a standard mileage rate of .55 per mile, you can deduct any use of your car for business use.
How can I make a home office deduction?
When you work at home you can deduct a certain portion of your rent or mortgage, as well as other utility costs, on your small business tax return.
What Should I Do When Starting My Small Business?
First and foremost, the most important part of operating a small business is to keep good records. By all accounts, the majority of tax problems are caused not by withholding information but by keeping bad records. Immediately organize all your business related activities so that you know where everything is. All checks, receipts, and expenses should be filed and kept on record.
Should I Keep My Own Books?
Unless you are an experienced accountant, you might want to think hard about this one. There is software available, like Quicken or Quickbooks, but to stay on the right track, it is a good idea to have a small business advisor look over your information to ensure everything is right.
Do You Need to Hire?
Some jobs in your small business will require you hire a new employee for a temporary period. Since this new employee will be under your responsibility, he or she is considered employee and should be filed as such. If you label an employee as an independent contractors, you could find yourself looking at an IRS audit of your business.
Small business tax questions are easily answered by any professional tax accountant. When starting your own business ask yourself these questions to make sure your small business starts off on the right foot and has a long term success rate.
