Tax Tip #11
Tax Savings with Small Business
As I start to write, I realize I do not have the intense vocabulary to express the fun I have in sharing this aspect of an otherwise boring tax return. I am always happy to prepare a small business tax return the first time and beging to share ways to increase profits and deduct the expenses as they do so. It really becomes fun as the client uses the rules available to reduce his tax liability as he/she begins to see other opportunities open up.
The tax deductions allowed for a small business to get off the ground are wonderful. I have watched people use these business to promote other business for the primary reason of enjoying the tax savings that come with traveling for business purposes. Then after savings on travel for a few months to years, they start to reap the benefits of starting the business in the first place. Then the start up is two fold. The tax consequences, benefits and downfalls, of opening a small business should be known first. I have so many that come to me to do taxes that did not research anything prior to taxes coming due. It is so sad the lost benefits for that first or more years! Please review these things before jumping into a business. Knowledge could also increase the opportunity to make the business profitable without a large tax balance at the year of the year. Those always hurt!
The type of business is one of the important factors. A legal document preparer will not have much realistic cause to travel to New Hampshire or Florida. However, a northern Californian Tax Specialist could have a seminar in southern California. I have links to offer suggestions on this later on! But, please get the idea of what benefits come first, so you know where you are headed. To continue, A multi-level marketing representative would have reasons to travel EVERYWHERE doing shows or exibits. A personal example would be fly to Virginia (where my family lives) and do a show in the evening for two to three hours. The primary reason is to build my business, tax deductible. The side effect is I see a beautiful beach and visit family while building my income. Why only do shows locally? So, these primary business trips being tax deductible could prove very enjoyable.. enjoying work is something I have really started this year. To get a list of tax deductions available please send a request to Rica Gilmore East Coast 916-628-2846 or West Coast 757-562-2080.
This website contains information related to law and is NOT LEGAL advice. It contents is for information only. If you need legal advice, please consult an attorney or act as your own.
All documents typed are prepared by Rica Gilmore.