Tag: taxes

Posted on by

Preparing for Tax Season

Tax Season

Tax season is upon us. If you’ve already completed your taxes, great work. If you haven’t, check out some of these tips to tackle your taxes like a pro.

Tax Deductions on Travel Expenses

Many business owners aren’t aware they can deduct taxes from a business trip combined with a vacation. Outlined below are a few examples of deductible travel expenses.

  • New business: Looking for a new location? Travel to and from the location on days meetings happen are deductible.
  • Conferences: This is most often the work and play trip combined into one. Travel to and from the conference is deductible, but days that business doesn’t take place are not deductible.
  • Board meetings: For board meetings to be deducted, there must be a reason why the primary location is not suitable for the event. For example, to get more board members to attend the meeting would qualify.
  • Spouse/Children: Travel for children is typically non-deductible, unless there’s a reason. If your child is your videographer and attends the trip to work with you, then that would qualify as a deductible expense.

Home Office

If you have a home office, the home office deduction won’t cost any more than what you already pay. The home office turns a percentage of your personal home expenses into tax-deductible expenses. Speak with your tax person to calculate the amount of savings this deduction can influence the amount you may owe.

Follow these strategies to get your personal and business income taxes to the lowest legal amount. Stay tuned next week for more tax tips.

Inspiration for this post came from “Tackle Taxes Like a Pro” by Jacob Curtis, CPA, published in the February 2021 issue of American Quilt Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you.

Posted on by

End of Year Tax Tips

As 2018 comes to a close, there are many things we would rather use the remainder of our time with other thinking about taxes. But the changes you make now can help keep the cash flowing come tax season. Check out these tips to help your small business.

  1. Find out if your business qualifies for different treatment. The next time you meet with your tax specialist, check if your status is pass-through and if you can switch to C-corporation. New laws decrease income tax rates from 35 percent to 21 percent for all C-corporations, but be sure to ask an expert if the switch makes sense.
  2. Pay your taxes throughout the year. Ask your tax specialist if you can pay taxes at quarterly estimates in 2019 instead of in one lump sum.
  3. Think about retirement. Contributions you make to you or your employee’s plans can be tax deductible. Check with your specialist to see if opening a new retirement plan counts too.
  4. Buy some equipment. This includes both new and used, and equipment bought after September of this year can be listed with 100% depreciation.
  5. Defer revenue. Wait until the end of the month to do billing or wait to get some services until January. On the flip side, if you have events or things you need to buy in January, consider purchasing them early.
  6. Give to a charity. Tis the season for giving, so why not get two birds with one stone and not only give back to your community, but help make your taxes more manageable.

taxes.png

Hopefully 2018 has been a more prosperous year than the last, and gives you the problem to worry about what your taxes are going to look like. Regardless of your financial standings, these tax tips can help all businesses manage their bottom line.

If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you.