HOMEBUSINESS TAXDEDUCTIONSWhen launching a start-up, many business ownerswonder what costs theycan and can not deduct.
HOMEBUSINESS TAXDEDUCTIONSA simple rule to follow isthat deductions have to beboth ordinary expenses andnecessary expenses to thebusiness.
HOMEBUSINESS TAXDEDUCTIONSThere are a variety ofplaces whereentrepreneurs can deductcosts. For instance...
HOMEBUSINESS TAXDEDUCTIONSA few areas are supplies,advertising, travel andentertainment, insurance, repairs,rental fees, worker pay, etc. Alsodeductible is the business use ofyour home and car.
HOMEBUSINESS TAXDEDUCTIONSThe IRS website has additionalinformation on write offs.If you maintain documented receiptsand excellent records of expendituresregularly, tax returns will be easier tocomplete.
HOMEBUSINESS TAXDEDUCTIONSUse a business credit cardfor business expenses.Do not mingle personal andbusiness accounts.
HOMEBUSINESS TAXDEDUCTIONSFor people who dont use anaccountant, you may want totake advantage of a simpleaccounting software program likeQuick Books Pro or Quick BooksSimple Start..
HOMEBUSINESS TAXDEDUCTIONSThese programs organizeboth income and expensesso that preparing income taxreturns does not becomeoverwhelming
TAX RETURNDOCUMENTSThe income tax forms needed fora particular business will vary,depending on the way thecompany is organized (a soleproprietorship, corporation, scorporation, LLC or partnership).
TAX RETURNDOCUMENTSYou can access the requiredforms from the IRS site, withdirections for ﬁlling them out.
TAX RETURNDOCUMENTSAccording to the IRS website, thosewho run a sole proprietorship orLLC complete a 1040 individualincome tax return form with aSchedule C Attachment, proﬁt orloss from business.
TAX RETURNDOCUMENTSCorporate entities use form1120 while S corporationsuse form 1120-S. Companiesthat are partnerships useform 1065.