TAX FILING FOR SMALL BUSINESSES. BEST PRACTICE.
Filing taxes for the first time is a very time consuming and difficult task, especially with frequent changing tax laws every now and then. In addition, collecting accurate data and reporting it to tax authorities, is a time demanding, time sensitive and meticulous task. For such reasons it’s highly recommended to hire an experienced tax accountant to file for you safely within the required time norms.
WHICH DOCUMENTS ARE NEEDED TO FILE SMALL BUSINESS TAX RETURNS?
In order for you to successfully file returns for your small business, we recommend to gather up the following documents:
Financial statements help in assessing your assets and liabilities which helps your accountant to depict a clear picture of your business.
Assets of a business can be tangible or intangible form where your accountant calculates your capital gain or capital loss which is an essential part of filing accurate tax returns.
You can use your vehicle operating expenses for tax deductions and for that you need to maintain your vehicle log book which will tell you how many miles the vehicle has been used for business purposes.
HOME-OFFICE EXPENSES SUMMARY
If you use a portion of your house for business purposes and your principal business place is mentioned as your house then you can avail this for your tax deduction up to the extent of the portion of your house which is being used for business purposes and you can claim a tax deduction of $ 5 per square foot for the portion of your house being used for business purpose.
FORM 1098-MORTGAGE INTEREST AND PROPERTY TAXES
If your home is mortgaged and you use a portion of your house for business purposes you should arrange form 1098 from your mortgage company at the end of the year in this form you will get the summary of your mortgage interest and property tax and then after calculating the portion percentage which is used for business for claiming tax deduction according to that
Depending on your business type your frequency of tax payment depends with the help of an expert accountant you can manage very easily and help your business to run smoothly. Contact us today, our CPA’s will provide the help you need to file for your small business taxes successfully.