Tax Tips for Small Business Owners
For many people, spring time triggers a flurry of activity around their taxes. But for small business owners tax time is all the time. To make the best of your tax situation as a small business owner, you need to be attentive to your tax strategies all year long. Not just in the spring.
Take advantage of these year-round tax tips. Be sure that your business’s taxes don’t make spring time the worst time of the year for you.
Make Tax Preparation a Daily Activity
Nothing makes the spring tax season more stressful for small business owners than having to scramble to gather all your records and receipts. If you miss anything, you risk losing out on deductions that could significantly reduce your tax burden.
Reduce that stress by tracking your business expenses as they occur, every day of the year. Don’t throw your receipts into a shoe box with the intention of dealing with them later. Because if you do, “later” will be at the last minute as the tax deadline looms. Instead, record those expenses in your tax software as soon as you incur them. Then, when the tax deadline approaches, all your deductible expenses are already where they’re supposed to be. And you won’t waste time or your peace of mind looking for them.
Don’t Miss Out on Big Deductions
Small business owners should develop tax strategies now. That way when the deadline rolls around, you’ll be able to take advantage of all the deductions that are available to you as a small business owner.
One of the most significant deductions available to small business owners, is the Section 179 deduction. Especially those who own or lease heavy equipment. The IRS built these deduction regulations specifically to encourage small businesses to invest in capital by giving them incentives to do so.
The rules apply to the purchase of different kinds of business equipment. This includes heavy equipment and commercial trucks. They allow small business owners to write off the full value of the equipment in the year you put it into service rather than depreciate it over time giving you access to a large, immediate deduction in the first year you own the equipment.
Even better, these rules apply to equipment that small business owners lease through certain lease programs. Allowing you to write off the full value of leased equipment in the year the lease begins. With the right strategy, this can result in a tax deduction that’s greater than the total of your lease payments for the year.
Get Help from a Professional
The tax breaks small business owners qualify for can be substantial. Trying to understand them can be daunting. As a small business owner, you don’t want to plan to take that big Section 179 deduction for your equipment lease only to find out at the end of the year that the lease program you signed up for doesn’t qualify. Consulting a professional about your tax strategy can help you avoid mistakes in your initial tax planning. This will avoid the headache of the last minute during tax filing season.
Our financial professionals are qualified to guide small business owners through this process. Our equipment financing programs are designed to provide small business owners with the best tax advantages possible.
Visit us or call us at 801-386-8222 today so we can show you how we can add value to your small business as a small business owner.