Stephen WIlliams, CPA and Partner of GYL Decauwer LLP, discusses the Section 179 tax deduction. This video will explain what Section 179 is, why it’s great for small businesses, and why now is the best time for small businesses to invest in new hardware, software, and machinery.
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Your Home Based Business Tax Deductions
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A big advantage of
working from home is the tax benefits of operating a home based business. Working from home Allows you to deduct portions of bills that you are already paying to live there.
You can deduct home expenses
if you actually work in your home. It is easiest to do this if you have a room set aside for your business. Measure out how big that room is in proportion to the house, and you can deduct expenses using that percentage.
For example, if your place of doing business takes up 5% of your house, you can deduct 5% of your heating expenses for the days you work. (In other words, if you do not work weekends, you can not deduct for weekends.)
You can deduct items such as mortgage interest (though not your mortgage itself), electricity, telephone, insurance, and expenses for maintenance and repair. In general, you can deduct the portion of expenses that directly Relates to your business.
You can deduct costs for your internet service provider in proportion to the amount you use it for your business, too. If it’s used completely for business you can deduct it all, but be certain before you do this that you are not using it for other reasons.
Having a CPA do your taxes for you has major benefits. They have computer software made up by tax pros and former IRS workers that you would not ever be able to use unless you went through lots of accounting training.
everything working 100% honest with your CPA about. If you are called in for an audit your CPA will tell you to say nothing but your name and your CPA does all the talking. The IRS has to find mistakes not you. If a CPA does your tax deductions you will get you would never know to take and your CPA will therefore take away deductions you can not legitimately take.
A CPA will cost you more but will get you much more back. Tax filings done by CPAs are far less likely to be called in for audits because the IRS knows the CPA’s reputation is at stake with every tax form filled out and so the CPA will be very careful that every little detail is done correctly.
Keep a separate notebook
for tax deductions on each page and make a heading for all possible deductions like advertising, supplies, repair parts, phone, computer, etc. and write them down and save ALL your receipts in a separate large envelope. Write your deductions in this notebook, everyday happen, as they. Remember, your tax preparation is a daily, year round effort and is an important part of your business.
Write everything in your notebook that could be a deduction and then at the end of the year let your CPA decide what is and is not a deduction. He or she knows and you do not. It is their job to know. This way you will not miss out on any deductions you do not know for sure on and you will not take any deductions you do not have coming. Pretty neat huh?
You will get a lot bigger income tax refund this way and have a clear conscience you did all the right things and you will not have any worries about a scary IRS audit. Talk over with your CPA what he thinks about the way you are keeping records and learn from him or her better ways to do it. They will usually have valuable tips for you to help you run your business better. This chit chat at the end of your tax preparation is invaluable to you.
The tax benefits of operating a home based business enable you to deduct things you would otherwise be paying in full. If you are considering a business from home, it’s a good way to lower your costs. This is just one more advantage of working from home.Source:http://www.irs.gov/faqs/faq-kw82.html Plus my own life experience of business tax over 40 years
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Charleston Business Tax Help QuickBooks Specialist, Try Us
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http://www.sc-accounting.com – Hi, My name is Larry Wright and I am the Managing Partner at Ross WRIGHT Chason. We are a professional consulting company providing business tax help Charleston to home-based entrepreneurs to small and mid sized businesses and even non-profit organizations, with offices in Charleston and Hilton Head, SC
We have been providing affordable Charleston Business Tax Help, Accounting, Financial Management, Tax Planning & Preparation, and Business Intelligence services to small and mid-sized business owners and not-for-profit organizations throughout the entire low country since 2005.
One question many people ask is
What are the risks of trying to do your business accounting and financial management yourself?
Often over-looked is the fact that the small business owner needs the exact same advisory team members as does his counterpart in the corporate world, the Chief Executive Officer. What IS different, however, is the availability of financial resources to engage such a team.
Nevertheless, when businesses attempt to save money by doing it themselves, they lose sight of their real role: That of delivering their particular talent to a market that wants it. In other words, valuable talent is wasted by diverting it to areas in which you do not possess the requisite skills. You must accept that these soft costs are necessary, nevertheless, and are part and parcel to being successful. It is why enlisting Charleston business tax help may be critical, and may greatly simplify your ability to solve crucial operational and financial problems while growing your business.
If you would like more videos and tips like this one, click on the link or go to http://www.sc-Accounting.com or call us at (843) 647-1559
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