Tips to Make Your Tax Season a Little Less Stressful

Tips to Make Your Tax Season a Little Less Stressful

For the most part, none of us like paying taxes. Unfortunately, it is something that must be done; therefore, it is in our best interest to make sure we get the most out of it.  Doing your due diligence on hiring an accountant, filing a 1099, or utilizing accelerated depreciation methods such as section 179 or bonus, can save you and your business hundreds of thousands of dollars.

Whether you are filing for yourself, a small business, or a major corporation, there are plenty of tricks available to save you time, effort, and most importantly, money. Here are some tax-related tips to make a frustrating time just a little easier:  

  • What can you write off?  Because life can be expensive, from business and personal expenses to paying Uncle Sam, one way to save money each year is to ensure you are including all the legitimate tax write-offs that intersect both personal and business expenses.       
  • The 1099: Business owners guess at its rules and requirements. Tracking changes to the procedures can be so exasperating that some entrepreneurs just give up and file nothing at all. Because penalties can add up quickly, this can be dangerous to do. But the 1099 doesn't need to   be complicated – just make sure that you consult your accountant to ensure you are taking advantage of this.
  • Selecting a business structure is among the many decisions you will need to make when launching a business. If you do nothing, your business, by default, is structured as a general partnership or sole proprietorship. These may be the simplest entities to form, but they offer one major drawback: there is no separation between the business and business owner. If your partnership or sole proprietorship business is sued or cannot pay its bills, your personal assets can be on the line. That is why both the Limited Liability Company (LLC) and C corporation, or just corporation, are popular business structures as they minimize the owner’s personal liability. These, however, have vastly different approaches to taxation.                                                                                   
  • Keeping it together: Many people often ignore or quickly say "No" when asked whether they want a receipt, but not small-business owners. Savvy business owners simply know to keep receipts because if they don't, their returns could be in peril. Receipts are audit protection, and it is crucial to a small business to take that seriously.

As we come to the close of this year, we hope that these tips will assist in making the upcoming tax season more fruitful. Our professionals at Martin Starnes & Associates CPAs, P.A., are here to assist you!

 

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