4 Tax Tips for Small Business Owners

Proceed with Caution: Some Expenses are no longer deductible
With the new Tax Cuts and Jobs Act coming along, more and more people are paying more attention to their taxes. One thing business owners should pay mind to is that certain expenses have been limited or completely eliminated. For example, you can still deduct 50 percent off the cost of most meal expenses, but you can’t take your clients to go see the Lakers and later deduct the price of tickets from your taxes.
Pay Close Attention to Receipts
Receipts tell the story on you spent your money over the last year. Most of those purchases will probably be for goods and services directed towards bettering the company. Most of these purchases will be able to be deducted from your taxes, but in reality it might be kind of a hassle to keep track of a years worth of receipts. Lucky for you there’s apps out there that store and organize all your receipts in one place.
Take Advantage of Specific Deductions
Many small business owners work from a home office, but not everyone realizes that they can deduct expenses related to the home office, such as internet utilities or insurance. Moreover, you can also deduct cost of transportation. The key is, however, to calculate what percentage of your home or car is actually being used for work. When dealing with a car, there’s two types of categories to determine the deduction: the standard IRS mileage rate or your actual car expenses, such as gas, repairs etc…Do your homework and figure out which one will provide the most financial benefits before filing. Every business is different in its own way. Make sure to do your due diligence and find out which deductibles will be applicable to you and your business.
Hire Family
Co-mingling personal affairs with business might not always be the best idea, but in this case it is. By hiring a family member, you can shift your business income to a lower tax bracket. However, make sure you are keeping sufficient time sheets and records.