Saving money on taxes is a big deal for a small business owner. Not only does it mean more money with which to run your business, but it also means more money to pay your salary as the owner of the company.
Here are a few suggestions for how to save money on taxes.
Business expenses. Do like Santa does: Make your list, and check it twice. More, if necessary. Be sure you included every possible expense. If you leave off business expenses, your net income may look higher than it actually is, making you pay more in taxes than you should.
Business property. If you have business property such as real estate that has been depreciated over a period of several years (see IRS Form 4562, Depreciation and Amortization), you can only claim a portion of the expense as a deduction on each year's taxes. You can make sure this is done correctly by utilizing cost segregation, also known as cost segmentation, an analysis process that recategorizes your property to maximize your deductions. A net present value calculator will tell you whether you can benefit from a cost seg analysis.
Business gifts. You can also deduct business gifts to reduce your net business income. For more information on this, watch the free video below.
Tuesday, December 23, 2008
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