There isn’t a small business owner out there who is not looking to enjoy a thriving small business that offers consistent growth and profits. Every business owner must pay taxes on all the profits they earn which is why we want to take this time to share some tips on how you can lower tax liability and enjoy greater business growth.
Understanding Your Options
Here at Tax Alternatives, we understand that the more expenses your small business has, the lower your overall tax liability will be. There are, however, some expenses that will contribute to lower tax liability that many small business owners are unaware of. Here are a few tips we want to share on how you can do just that.
- Make Payments with a planned timeline – At the beginning of your new financial year you may want to pay the entire cost of specific expenses, such as marketing or advertising expenses, upfront to allow for you to include those expenses in the present tax year. You may even find it useful to move up the timelines for specific business expenses that are planned for the end of the year in your efforts to lower tax liability. Again, expenses specific to advertising and marketing and even equipment purchases can be moved up in order that they can be included in the current tax year.
- Deductions for home offices – If you run your small business out of your home you can definitely benefit from a deduction for your home office. The only catch is that you must have an area of your home that is dedicated to your business and work. Whether it is your basement area, a spare room in your house, or a small structure attached to your home, it doesn’t matter as long as you are using the area specific to your business. In this scenario you would easily qualify to take the home office deduction and reduce your business taxable income. When working from your home, you are also able to deduct a percentage of the utilities, mortgage and other home bills that are necessary for your business.
- Car expense deductions – If you use your car to attend business meetings with clients or any other activities related to your business, you can deduct part of the car expenses such as gas and repairs. Be sure to track your business mileage separate from personal mileage as well.
- Business travel expenses – Any travel expenses you incur can certainly help to lower your taxable income and therefore lower tax liability. It is important to keep all travel receipts from transportation receipts such as airline tickets to meals and hotels.
Trust Our Team of Professionals
Here at Tax Alternatives our team of highly skilled and experienced tax specialists is steadfast in meeting the individual needs of all our valued Brentwood clients. We understand full well that your small business is one of the biggest investments you will make in a lifetime. We want to be sure that our clients are aware of these simple steps you can take to lower tax liability. Our team stands ready to help you not only lower your taxable income but make the most of all the expenses that can help reduce taxes you must pay.
With our team of experts, you need not worry or stress when tax season is here. Instead, put your trust into the hands of some of the absolute best in the industry and give yourself more time to focus on your business growth and profits. For more information about our high-quality, affordable tax preparation and filing services or lower tax liability options or if you would like to schedule a free consultation, give a shout out to one of our staff today. With our team you never have to stress over tax season again and can spend more time smiling and actually enjoying your small business profits!