The balance between profit and loss is thin when it comes to owning and running a small business. Business owners are often looking for ways to make the profit stretch in any way. Effective tax planning could be the answer to some big savings for those that own a small business. It helps minimize their tax liabilities and maximize their financial health. However, it can’t be done unless small business owners understand various tax strategies and have the ability to navigate the complexities of tax regulations. Mark Dicus & Company is here to talk about how tax planning can help small businesses save more money.
Tax Deductions Available to Small Businesses
There are several tax deductions that small businesses can take advantage of that will help reduce their taxable income. Some of these deductions are more valuable than others. Here are some of the most valuable tax deductions for small businesses.
– Vehicle Expenses: Small businesses can deduct any expenses that are related to the use of vehicles when used for business purposes. This includes miles, fuel and maintenance.
– Home Office: Many small businesses have a portion of their home that is used for a home office. This portion of your home must only be used for business though to allow you to deduct some home expenses from your taxable income.
– Salaries & Wages: Any payments that you make to employees can also be deducted to help reduce taxable income.
Available Tax Credits for Small Businesses
For small businesses, there are tax credits that are available to help reduce your tax bill. A couple of these credits include:
– Work Opportunity Tax Credit: There are certain target groups that businesses can hire to qualify for this tax credit.
– Research & Development: This tax credit is out there to incentivize businesses to engage in research activities. It helps encourage businesses to continue to develop and encourages innovation.
Year-End Tax Strategies
It is vital for small businesses to do some strategizing at the end of the year to bring big savings by optimizing their tax situation. Here are some of the key ways they can do this:
– Evaluate Tax Implications: Take a close look at the tax liabilities that could be coming your way and plan for them as a business. This can be done by carefully reviewing your financial situation.
– Deductions & Credits: The deductions and credits available to you can have a major impact on your tax liabilities. Make sure you’re taking advantage of any of the deductions or credits you qualify for.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
Taxes as a small business can be complex. When you turn to Mark Dicus & Company, we will ensure you are taking full advantage of any deductions or credits that you qualify for. We want to help you save as much money as possible on your taxes. Call us today!