Are you worried about the upcoming tax season?
The end of the year is fast approaching, which means it’s time to start thinking about what tax deductions you can claim on your taxes.
But, if you’re a small business owner, filing taxes can be complicated. But don’t worry, we’ve got you covered!
Here are 5 crucial tax hacks for small business tax season.
1. Don’t Miss Key Deductions
Missing key deductions are one of the biggest ways that people mess up their tax returns. This is especially true if they’re self-employed, own multiple businesses or have side gigs outside of their 9-to-5 job.
Be sure not to miss any deductions – even if it’s something as simple as buying stationery for your home office!
Even though these expenses seem “small” they all add up and affect your bottom line come tax time.
2. Use Your Personal Vehicle For Business-Related Trips
This is one of our favorite tax saving hacks. If you own a business and use your personal vehicle for business-related trips, it’s important to keep thorough records and stay organized. You can deduct mileage on a per-trip basis.
This is an easy way to claim travel expenses related to your small business, but you’ll need to record the date, length of trip, destination, and purpose of each trip.
A general rule of thumb is 54 cents per mile in the U.S., but be sure to check with your local IRS office or consult tax guidelines from previous years to make sure you get the most accurate deduction possible!
3. Keep Detailed Documentation of all Supplies
Do you have a home office? If you run a home office, keep detailed documentation of all supplies used.
While there are some precautions that must be taken when claiming a home office expense (you have more than one room for personal or business use, even if you share it with another person, etc.), homeowners can subtract a percentage of their household costs.
You can make tax filing 100 times easier with eFile 360.
4. Tax Deductions on Repairs and Maintenance
Are you still renting? A common misconception is that landlords can’t make tax deductions on repairs and maintenance to the property.
But if the work is necessary, landlords are able to deduct all expenses they incur during monthly rental income.
If your landlord falls into this category then be sure to keep records of any work done throughout the year – especially around the time your lease was renewed!
Be sure to document proof of payment as well as proof of who completed the work for future-proofing.
Want More Tax Hacks Like These?
We understand how stressful tax season can be. Especially if you’ve never done taxes before. That’s why we hope this article has given you some solid tax hacks for avoiding some costly mistakes.
These tax tips for small business will help you get the maximum tax deductions possible this tax season.
If you have enjoyed this article, please don’t forget to check out the rest of our blog for more tax saving hacks, creative tax strategies, and tax saving ideas for small business.