In this article, you will learn about…
- Some of the biggest mistakes small business owners make,
- How to file taxes for your small business, and
- The deductions that many small business owners overlook.
Is The IRS Auditing More In 2022?
The IRS is auditing more people in 2022. Some reasons for more audits are…
- Computers are always being upgraded to cross-check more factors,
- The presence of any unusual activity detected with your taxes, or
- If you are required to pay unusually higher taxes than in previous years or get a much larger refund than normal.
More and more people are being audited at random. If you are being audited, hiring a professional to help you to be sure that the IRS does not go into areas they shouldn’t go into is highly recommended.
What Are Some Of The Biggest Tax Mistakes Small Business Owners Make?
Two of the biggest tax mistakes small business owners make are…
- Not paying your payroll taxes or paying them late because that is money withheld from employees, and
- Not filing your 941s or filing them late.
What Do I Need To Do To File Taxes For My Small Business?
To file taxes for your small business, you should…
- Keep an accurate profit and loss statement for the entire year,
- Keep all of your receipts for deductions,
- Keep your receipts for deductions organized and separated, and
- Have a separate business account that you do not pay any personal expenses through.
Is It Ever A Good Idea For Small Business Owners To Do Their Own Taxes?
It is rarely a good idea for small business owners to file their own taxes. You, the owner, know how to run your business – but you don’t know the ins and outs of the tax system.
Are There Any Tax Code Changes This Year That Small Business Owners Should Be Aware Of?
There are no significant changes to the Tax Code this year. However, there are two small changes that may impact small business owners:
- The first year depreciation has been changed to allow 100% depreciation in the first year, and
- For 1120-S tax filing, there are additional record-keeping requirements.
You need to check with your tax preparer to learn how these items impact your specific business.
What Expenses Are Tax Deductible For My Small Business?
Any expense that furthers the business and the cause or purpose of the business will be tax deductible.
What Are The Deductions Small Business Owners Often Overlook?
Some deductions that small business owners often overlook include…
- The employee retention credit, and
- The mileage deduction.
If you are going to use the mileage deduction, it is important to use it correctly by keeping a log showing…
- The miles used,
- The purpose of the trip,
- Who you met with, and
- Several other items as needed.
Am I Eligible For A Home-Office Deduction?
You are eligible for a home-office deduction if…
- Your home is your primary place of business where you do most of your business,
- You have a room that is 100% for the office.
Your office cannot be used for another purpose, such as a family room. It must be used solely as your office.
Is The Paycheck Protection Program Or PPP Relevant To My 2021 Tax Filings?
The Paycheck Protection Program, or PPP, is very relevant to your 2021 tax filings. If you receive a Paycheck Protection loan, you must report that money on your form, but it is not counted as income. Also, the expenses that you pay with that loan can still be used as a deduction. It is very good for the taxpayer.
For more information on Filing Taxes For Small Businesses In SC, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.