A recent article, 3 Things Small Business Owners Should Do Before Filing Taxes by Bruce Hakutizwi says that tax time is exhausting, particularly with the passage of new tax legislation in January. Even established small business owners feel more stress this year as they prepare to file.
As a new small business owner in shared office space Ballantyne, here are three things you can do to get your business ready for filing taxes.
1. Identify what tax return/form you need to file.
- Sole proprietorships – Form 1040 (U.S. Individual Income Tax Return filing).
- Partnerships and limited liability companies (LLCs) – Form 1065 (U.S. Return of Partnership Income).
- Corporations – Form 1120 (U.S. Corporation Income Tax Return).
- S-Corporations – Form 1120S (U.S. Income Tax Return for an S Corporation).
2. Prepare your Financial Statements.
Prepare a correct and complete balance sheet and profit and loss statement for your business to allow you or your tax professional to easily complete the returns.
3. Identify Your Allowable Business Expenses.
Here are some of the allowable business deductions.
- Equipment purchases. These can be deducted in a year, instead of depreciating the cost over several years.
- Business expenses. These include business insurance, advertising expenses, legal fees, professional services, rent (office space rental and meeting rooms rental) and utilities, salaries and wages, professional association membership dues.
- Auto expenses. The IRS provides business owners the option of deducting actual business-related auto expenses or claiming a standard mileage deduction.
- Meals, Travel and entertainment. Under the new tax legislation, entertainment is no longer deductible, while meals are limited to a 50-percent deduction rate. Business owners can also deduct ordinary and necessary expenses incurred while on business travel.
These preparatory steps will reduce some of the stress and anxiety related to tax time. Are you looking for workspace solutions in Ballantyne for more productivity? YourOffice Ballantyne has come alongside dozens of businesses looking for everything from office space Ballantyne to meeting space Ballantyne. We know your business is unique, and your office space shouldn’t be any different. Let us match the perfect space or service to fit your business needs.