7 Tips for Lowering Your Business Taxes
As tax season gets into high gear, there is still time to save money by lowering your business taxes. Here are 7 tips to help you cut business taxes this year, by taking advantage of legitimate deductions and credits and depreciation allowances, and funding a business-related IRA. You may also find some money if you re-check your business tax return for errors.
The best way to save money on business taxes is by taking all available tax deductions. Look through this list of Tax Deductions A to Z to see where you can take a deduction. Of course, you must have the documentation on the expenditure to take the deduction, but it's not too late until you actually file your return.
In addition, check out this article on Commonly missed business tax deductions. More »
Tax credits reward businesses for making improvements that can help employees and customers. For example, businesses can get tax credits for updating facilities for better disability access. This year, you may be eligible for the new health care tax credit for smaller employers who pay employee health costs.More »
It's easier now to calculate the deduction for your home office space, with a new alternative method, beginning with 2013 taxes. Just determine the space where you do business "regularly and exclusively" in your home, then multiply by the per-square-foot amount (currently $5). Even if you don't qualify for the simplified calculation, you may still be able to save money by using the regular home office calculation method.More »
There's still time before April 15 to put money into an IRA. Melissa Phipps at Retirement Planning shares the 2013 contribution limits for
SEPs, SIMPLEs and Solo 401(k)s.
And William Perez at Tax Planning explains common business and personal IRAs, including SEP and SIMPLE options.More »
Errors can cost you money and delay your refund. Here are 5 common business tax return errors to check. And work through this Business Tax Preparation Checklist so you don't miss anything important.More »
While it costs money to use a tax preparer instead of doing it yourself, a good tax preparer can find you legitimate tax deductions and credits and help you save money.
Look for a tax preparer who understands current business taxes and who can find and apply all legal tax avoidance techniques. This does NOT mean that you should evade taxes. Read more about the difference between tax avoidance and tax evasion.More »
1. Use all available tax deductions.
The best way to save money on business taxes is by taking all available tax deductions. Look through this list of Tax Deductions A to Z to see where you can take a deduction. Of course, you must have the documentation on the expenditure to take the deduction, but it's not too late until you actually file your return.
In addition, check out this article on Commonly missed business tax deductions. More »
2. Take advantage of tax credits
Tax credits reward businesses for making improvements that can help employees and customers. For example, businesses can get tax credits for updating facilities for better disability access. This year, you may be eligible for the new health care tax credit for smaller employers who pay employee health costs.More »
3. Take a home office space deduction
It's easier now to calculate the deduction for your home office space, with a new alternative method, beginning with 2013 taxes. Just determine the space where you do business "regularly and exclusively" in your home, then multiply by the per-square-foot amount (currently $5). Even if you don't qualify for the simplified calculation, you may still be able to save money by using the regular home office calculation method.More »
4. Fund a Business-related IRA
There's still time before April 15 to put money into an IRA. Melissa Phipps at Retirement Planning shares the 2013 contribution limits for
SEPs, SIMPLEs and Solo 401(k)s.
And William Perez at Tax Planning explains common business and personal IRAs, including SEP and SIMPLE options.More »
5. Check to Make Sure Your Business Tax Return is Free of Errors
Errors can cost you money and delay your refund. Here are 5 common business tax return errors to check. And work through this Business Tax Preparation Checklist so you don't miss anything important.More »
6. Find an assertive tax preparer
While it costs money to use a tax preparer instead of doing it yourself, a good tax preparer can find you legitimate tax deductions and credits and help you save money.
Look for a tax preparer who understands current business taxes and who can find and apply all legal tax avoidance techniques. This does NOT mean that you should evade taxes. Read more about the difference between tax avoidance and tax evasion.More »
7. Finally, the sooner the better
Get all your tax information to your tax preparer as soon as possible. Give your tax preparer time to find all available tax deductions and credits and work out the best possible tax savings. Check out these tips for saving money on tax return preparation.More »
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