Small Business Tax Tips: Where to Find Free Tax Information

Executive Summary About Small Business Tax Tips: Where to Find Free Tax Information By wayne M Davies

Small Business Taxes

Trying to get a handle on the complex world of small business taxes? There are plenty of good resources available, both online and offline, for free and not-so-free.

So let’s review some of the least expensive tax resources available. Believe it or not, the IRS has a plethora of free resources for the business owner. The place to start is the Small Business and Self-Employed Tax Center at www.irs.gov/businesses/small/index.html.

First, you need to know what type of business entity you own: sole proprietorship, S corporation, C corporation, limited liability company or partnership.

Once you have that basic piece of information in mind, click on the link “A-Z Index for Business” and you’ll be taken to a page that is organized by the various types of business entities listed above. Under the heading “Business Types”, click on your particular business type and you’ll be taken to a page that provides just about everything you need to know about taxes for that entity.

For example, let’s assume you are a sole proprietor. For income tax, there are links for forms Form 1040 and Schedule C. For Self-Employment Tax, there’s a link to Schedule SE. If you have employees, there are links to the various employment-related tax forms (Forms 941, 940, W-2, etc). This is a very handy chart because it gives you the big picture for all the main types of business taxes and their associated tax forms.

Below this chart is the heading “References/Related Topics”. Under this heading is a clickable list of several excellent resources that you can view online or download as free PDF files. Two of the best IRS small business publications are listed here: Publication 334: The Tax Guide for Small Business (for Individuals Who Use Schedule C) and Publication 583: Starting a Business and Keeping Records. Pub 334 is 53 pages and Pub 583 is 27 pages, so you’ll get plenty of information at a bargain-basement price.

Be sure to check out the Online Learning and Educational Products link. Here you’ll find both audio and video presentations by IRS staff on a number of small business tax topics.

Take advantage of these free tools and benefit from your tax dollars at work. For the small business owner who prefers not to spend a dime on tax advice, the IRS website is a great place to start.

Small Business Tax Tips

Executive Summary About Small Business Tax Tips By Jonathon Hardcastle

Any small business owner knows that they may live or die by the financial decisions that they make. While many cut corners by making prudent purchase decisions, few realize the opportunities that are available to them when it comes to working out the taxes for their business. In this article, we’ll give you some tips to help you realize the best ways to optimize your taxes.

- One interesting write-off that many small business owners fail to realize is their health insurance. The taxing laws dictate that self employed people may write off a full sixty percent of their health insurance costs, saving them potentially thousands of dollars.

If there are people in your family that can help you to operate the business, you can allow them to take on some of the income of the business, allowing you to put your earnings into lower tax brackets, assuming the relative performs some type of service to the business.

- Another aspect often neglected by uninformed small business owners is the prospect of a retirement fund. You can contribute to a qualified self retirement fund which is completely tax deductible in your returns.

- The first year expense limitation for any small business is now $19,000. Don’t forget to write off any business-related practices, including taking potential clients to lunch, or golfing, or whatever situation may merit as an expense. While it’s not a permanent solution, it can defer the damage your taxes do to you.

Keeping track of your financial records and keeping a clear separation between expenses made for yourself and those made for your business can really ease your struggle come tax time.

Small Business Tax Tips: How to Deduct Anything

Exexcutive Summary About Small Business Tax Tips: How To Deduct Anything By Wayne M Davis

Knowing what is deductible and what isn’t deductible has mystified small business owners for decades. This article should help you see the big picture.

What’s deductible? Anything is deductible, provided that it is specifically mentioned in the tax code as deductible. It’s as if Uncle Sam is saying, with a big smile on his face, “This particular item is deductible, no doubt about it.”

Anything is deductible, provided that it is not specifically mentioned in the tax code as non-deductible. There are deductions that are specifically disallowed. Again, imagine Uncle Sam (this time with a frown) telling you, “Sorry, but this particular item is not deductible, no doubt about it.”

But what most taxpayers do not realize (and the IRS is in no hurry to tell you this) is that most deductions are not specifically mentioned anywhere in the tax code. By that I mean this: most allowable deductions are not said to be deductible or non-deductible. Getting confused? For example, where does it say in the tax code that paper clips used in your office are deductible? How about staples?

Because the tax code does provide some general rules about what is deductible, and these general rules can be boiled down to this famous statement: Anything is deductible, provided that it is an ordinary and necessary business expense. Any expense that meets that two-part requirement is deductible. Let’s unpack that concept.

Here’s how the IRS defines these two requirements: By “ordinary”, the tax code simply means an expense that is “common and accepted” in your type of business.

Is it common for an office to use paper clips in the normal course of business? How about staples (not to mention the stapler)? Not only are basic office supplies commonly used in virtually every business, but it is an accepted practice for these items to be a normal part of a typical business, right?

By “necessary”, the tax code means an expense that is appropriate and helpful for your business. Now apply that concept to office supplies. Are paper clips and steps appropriate and helpful? Absolutely.

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