While there was a lot of hype about a 20% tax deduction for small businesses, most business owners whose name doesn’t rhyme with “grump” are confused. The big tax break to come might not arrive at all for many business owners. That’s why some smart small business tax strategies always need to be up your sleeve for dealing with the struggle of owning your own business.
Small business owners need to struggle with the squeeze between the gig economy and big-box chains. At every level of industry, there seems to be a scramble for a scarce amount of space in the field.
To ensure that your business doesn’t get squeezed out by taxes, follow these 4 tips from the True Resolve Tax Professionals.
1. Write Off Equipment And Repairs
Every small business is tasked with making big expenditures on equipment just to do the work they specialize in. This is a necessary cost of doing business but not without its risks. Thankfully, one of the best smart small business tax strategies is to write off equipment ranging from company vehicles to inkjet printers.
Another downside to all of this equipment is that it often needs to be repaired. Just like equipment costs, many repair fees can also be written off by business owners.
2. Take Advantage of Real Estate Deductions
There are numerous real estate deductions that are available to small business owners, depending on the city and state your business is located in. While there are some general federal deductions, there are also some local deductions to be made.
Whether you own your office, rent it, or work from home, there is a tax write-off available for you. Make sure you accurately document these deductions before you file your taxes in case you get audited.
3. Pay Ahead of Time
One of the best ways to save yourself major headaches or huge tax bills is to pay some of your taxes in advance. If you anticipate that your company will have to pay taxes this year one of the most helpful small business tax strategies is to see if you can estimate based either on last year or what your projected profit will be.
Talk to a tax professional or an accountant, and they can help you determine what you should be paying. Paying some tax ahead of time can help you balance the risks of waiting to pay it all at once.
You don’t want to end up with a giant IRS tax bill that you can’t pay in full when tax season comes around again, so get ahead of it with smaller payments each quarter.
4. Avoid DIY
While you might want to tackle your tax information on your own, you should really hire a professional to handle it. Your own personal taxes are one issue. The nuances of running a small business are often more complex than even the savviest owner realizes.
Even if money seems tight, putting together the funds to bring in a tax professional might even pay for itself. They can advise you on year-round strategies and legal loopholes that could save you thousands of dollars on your tax bill year after year. It’s a worthwhile investment.
Small Business Tax Strategies Can Save Your Hide
For small businesses, every dollar counts when you’re trying to maximize profits. When tax rates fluctuate wildly, it can send small business owners into a panic. Not knowing which way the wind is going to blow can keep consumers away from small businesses as well.
If you’re curious whether there are small business tax strategies you don’t already know about, check out our guide to find out more.
And to get caught up on your 2018 tax-cutting strategies, contact the True Resolve Tax Professionals today for a free Tax Discovery Session. Let’s get you on the road to paying less and profiting more.