The tax deadline is approaching quickly (April 18th for most states this year, April 19th for those states that celebrate Patriots’ Day), and for those of you who are small business owners, you have to do more than just file your own personal tax return – you also have to be concerned with filing taxes for your business.
All too often, small business owners miss out on huge savings during tax season simply by overlooking important tax deductions – don’t be one of them! Below, we’re sharing four of our favorite tax tips that we want you to remember this year and all of the years that follow:
1. Deduct startup costs: Getting your small business up and running can be quite costly, but the good news is that these expenses can be deducted so long as you have the proper documentation for them. Where startup costs are concerned, you can even deduct expenses that were incurred before the business really took off, such as education courses used to help further your career or a lunch meeting with someone who would turn into a future client.
2. Consider office supply costs: As a small business owner you have likely taken on the financial burden of purchasing all of the supplies your office needs, including furniture. Always keep these receipts handy as they can be used when filing to offset the amount of business income that is taxable.
3. Remember charitable contributions: If your small business makes charitable contributions during the year, you are eligible to deduct the amount that you donate – this includes both money and stocks. Donating appreciable stocks specifically can be an extreme benefit come tax time, since you can deduct the amount that they are worth at the time of filing even if it’s more than what you originally spent.
4. Think about employee expenses: Reimbursements that are provided to your employees by you are also considered to be deductible – examples include gas, food and travel. In order to claim such deductions on your tax return, your business will just need to have an “accountable plan” that proves these expenses are directly related to the business.
Here at RMP Capital, we recognize how important it is for small business owners to have access to the money they need to effectively grow and run their business, which is why we offer creative funding services that can help speed up cash flow. For information about the cash flow options we can provide, call 631.738.0047 today.