The unofficial first day of summer has arrived! Although, if you live in Houston, Texas, like I do, summer never really left!
Now I hate to bring up the recent tax season, after a lovely Memorial Day weekend of chillin' and pool fun, however, we need to chat.
The first three to four months of the New Year always, ALWAYS, makes me cringe. And I really cringed this year because many businesses seemed to be caught off guard when the various tax deadlines arrived. The last minute crush was real!
Maybe it was the change in the 1099 due date. Or maybe there were not enough public reminders to get things done and in on time.
Whatever the reason, we’re going to learn from the past season. Oh yes, WE! And for those that filed extensions, there is still time to make adjustments and do things right.
To help you and your business prepare for the 2017 tax year (or conclude on the 2016 extensions), I’m sharing a list of common and not so common tax deductions. This list can assist your business with categorizing its financial transactions, which can also result in a bigger bottom line.
Let's go over a few points. For an expense to qualify as deductible, it must:
be ordinary and necessary
not be extravagant or over the top lavish
be for your business, not for your personal life
Another point: The IRS considers the self-employed, freelancers, consultants, and independent contractors to be businesses. Therefore, anyone in those categories are similar to those that are in brick and mortar shops and has employees.
Now this list is not all-inclusive, nor is it one size fits all. However, there is something for all businesses.
Final few pieces of advice:
Save any and all receipts related to the business expense. This article will tell you how.
If you don't already, use accounting software such as QuickBooks Online or Xero to help you organize those expenses as well as income.
Consult with your bookkeeper, accountant, and/or tax advisor. Just one meeting (yes, just one) can do wonders for your business.
Finally, click on picture below in order to sign up and get the list of business deductions.
Let’s make 2017 our year by grabbing the bull by the horns.
To get your list of common and not so common deductions