Overlooked Business Expenses - Tax Deductions

For small business owners, every dollar counts. While you work hard to make more profits from the business, your income and self-employment taxes can be still too high for you to afford. Carefully review your tax return and check if you've deducted all expenses qualified for deductions. Surprisingly, you may still miss a few. Here is the list of commonly overlooked business expenses. The list is not intended to be applicable to everyone. - Advertising & promotional giveaways These include flyers, catalogs, etc - Audio, videotapes and DVDs to improve business skills. - Bank service charges on business accounts Monthly charges, penalties ...

Home Office Deductions - Tax Deduction Information

When you work from home, you can get benefits from the home office deduction. Some people may think that the home office deduction will significantly increase their chance of being audited by the IRS or it's very difficult to qualify for the home office deduction guidelines. But as long as you follow the requirements and keep good records of all business-related expenses, you shouldn't be worried about being audited too much. Regular and exclusive use To get the home office deduction, you must regularly use a portion of your home exclusively for your business. The IRS doesn't specify what ...

Disregarded Entity Definition - What is a Disregarded Entity?

What is a disregarded entity? A disregarded entity is a business entity which is considered to be an undivided part of the owner of the entity for federal tax purposes. That is, the entity is disregarded as an entity separate from the owner. A good example of disregarded entities is a single member LLC that does not choose to be classified as a corporation for federal tax purposes. A single member limited liability company that is not classified as a corporation automatically defaults to a disregarded entity, and file federal income tax return as a sole proprietorship. How does IRS treat ...

Estimated Taxes - Questions and Answers

What Are Estimated Taxes? The US tax system requires you to pay taxes as you make money. You're required to pay taxes throughout the year as you earn income rather than waiting until April 15th. When you're employed, you don't really have to worry about this because your employers take care of it for you. They withhold taxes from your paychecks. It's more complicated when you are self-employed, when you don't have enough money withheld, or when you earn additional income in real estate, investments, alimony or other means. You may need to pay quarterly estimated taxes yourself not to pay penalty. Who ...

Small Business Top Tax Questions

Basic Tax Questions That Small Business Owners Should Ask How should I keep my records? What kind of records should I keep and how long? One of the most important things in small business accounting is to keep good records. Good financial records help you calculate income and expenses, monitor financial status, and file tax returns. You may consider using business accounting software such as Intuit QuickBooks, Peachtree Complete Accounting, Microsoft Office Accounting Professional or Simply Accounting Premium. The IRS recommends that you keep your records at least four years. What expenses can I deduct and how much? A business expense ...