5 Small Business Tax Tips for Business Owners
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What Are Some Business Tax Saving Tips?
1. Properly Classifying Your Business
2. Researching Tax Credits
Disabled Access Credit Companies that make their business more accessible to customers with disabilities may receive a tax credit for any year they have any expenditures related to providing disabled access points. Increasing Research Activities If your company is engaged in any research and development (R&D) for a new product or manufacturing process, or for improving a product’s quality, then you may qualify for this tax credit Work Opportunity Tax Credit (WOTC) This is a Federal tax credit available to employers for hiring people who have consistently faced barriers to employment. If you employ veterans, ex-felons, or anyone that is on the IRS's list of targeted groups, you may be able to receive a tax credit for that employee’s qualified wages.
3. Knowing Which Expenses are Deductible
Home office deduction If you run a small business from home, and it’s your principal place of business, you may be able to deduct a portion of your home ownership or rental expenses. For this deduction to work, the home office needs to be used regularly and exclusively for the business. Business vehicle deduction If your car is 100% used for business, you may be able to deduct all of the costs of ownership and operation (within limits). If it’s used for both personal and business, you may be able to deduct a portion of its costs. Charitable deduction Your small business may be able to receive a tax deduction for making charitable donations of money, stocks, or goods. You typically can’t receive a tax deduction for donating services, though you may be able to deduct expenses related to the donation, such as travel or materials. If you own a pass-through business, your ability to deduct charitable gifts made by the business could be limited.
4. Understanding How Your Loans Are Taxed
5. Setting Up -- or Adding to -- a Retirement Account
Loans For Starting a Small Business
SBA Community Advantage Loan
SBA 7(a) Loan
Personal Business Loans
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