People are always searching for ways to lower their tax liability. Well here are few yummies that will fill your belly.
#1 Tasty Tax Tip
Home office deduction… There are 2 ways to calculate this deduction. #1 is to take your home office room and divide it by the number of rooms in your home not counting bathrooms, etc… So let’s say you have a four bedroom home and one is the office then you can deduct 25% of direct and indirect expenses. Number 2 and the easiest way is to use the simplified method which entitles you to $5 per square footage and is capped at 300 square feet totaling $1500. So that is $1500 deduction on your taxes that you can write off.Home office deduction... There are 2 ways to calculate this deduction. #taxdeductions #taxes #businesstaxes Click To Tweet
#2 Tasty Tax Tip
We all hear about the mileage deduction and the apps that track mileage but you can also use the actual car expense method where can write off gas, car repairs, car tools, license fees, parking fees for business trips, registration fees, tires, insurance, garage rent, car washing, lease payments, interest on car loans, towing charges, and auto club dues. Once you add everything up you need to determine your business use percentage and that will be your deductions. Things like parking fees and tolls the entire amount is written off. So sometimes that will actually give you a higher deduction than the standard mileage deduction.We all hear about the mileage deduction and the apps that track mileage but you can also use the actual car expense method where can write off gas, car repairs, car tools... #taxdeductions #taxes #business Click To Tweet
#3 Tasty Tax Tip
My favorite and last tasty tip is:
Hire your children. That means that they can earn as much as $6,300 in income, tax-free under the age of 18 if you have an unincorporated business. You can still claim them as a dependent on your taxes, AND write off their salary as a business expense. You can also start and can contribute to an IRA for them. They could use a Roth IRA, later on, to pay for college expenses or just have an early start into their retirement account.Hire your children. That means that they can earn as much as $6,300 in income, tax-free under the age of 18 if you have an unincorporated business. #taxtips #taxes Click To Tweet
Hope these tasty tax tips taught you some things that can help you with your business. If you want to learn more please feel free to reach out to at www.ssbmconsulting.com
My name is Sandra Morno and I am a small business tax consultant. I have been in the tax industry for the last 9 years preparing personal and small business taxes and honestly I never saw myself doing this. But my friend, mentor, fraternity brother saw something in me and asked me to come work for him. I was working on MBA at the time and he thought that I would be a good asset to this accounting company. He taught me everything I know and is literally the biggest nerd I know. He started doing taxes back in college over 20 years and loved to read tax law books. Who does that? He taught me everything I knew, which is why I do what I do and I love it. I am an IRS Enrolled Agent which means I can represent people in front of the IRS with their tax issues and considered to be a tax specialist. My passion is to educate and guide entrepreneurs in the right direction in the formation of their businesses. I also help educate to understand the tax benefits they are entitled to, implications of running a business and inspire them to be more aware of what is going on in their business.
This has led me to write about tax tips for US based businesses.
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