It’s important to know what your deduction amounts are, and reconcile these with the receipts you have before you get started. A successful tax return experience is often one that’s well planned. We’ve put together this printable checklist to help you get ready.
Getting businesses off the ground requires a fair amount of investment. You can elect to deduct up to $5,000 for the first year, and the rest refunded over 15 years. (Note: If it is a computer or other previously-bought item drafted into business use, claim the present fair-market value.) The hitch is that there needs to be adequate records. Credit card records might not cut it, because only a receipt can show the $600 charge at Best Buy was for a computer.
The healthcare tax credit is offered on a sliding scale. Businesses that employ fewer than 10 full-time-equivalent employees with average wages under $25,000 per person get the most benefit. To claim the credit, use form 8941 to calculate your eligibility. If your business did not owe taxes in that year, you may be able to carry the credit forward. If a remainder of the tax premium exists, you can claim business expenses against it. Other than this, be sure to fully be in the know about The Affordable Care Act, also known as "Obamacare" to avoid penalties and stay compliant on an individual level.
Keep good records about who is an "employee" and who is an "independent contractor." This can avoid tax headaches and notices of misfiling which can lead to penalties and IRS audits. Not sure how to file your employees?
Become familiar with the tax rules surrounding starting, running, selling and shutting down a business. Determine whether they should operate as a partnership, an S corporation, an LLC, or a sole proprietorship. Your tax accountant should be closely familiar with these rules. If you are in need of a tax accountant you may want to try somewhere similar to Dave Burton, who may be able to help you with your tax accounting needs.