As Kissimmee tax service professionals we know that every business has to file a yearly tax income return with the Internal Revenue Service or IRS. In some cases, the business may also have to file a state income tax return, depending on the organization type. A tax return is a document that states the total yearly income earned by the business. From this, all business related expenses are deducted so that amount for the taxable income can be calculated.
Preparing tax returns is a complicated process and so you must seek reputed tax services in Kissimmee. Doing this would not only simplify the task, but would ensure that you get the maximum possible refunds.
The IRS requires several documents for paperwork purposes when you file a return. Your chosen tax services in Kissimmee should be able to guide you more about these, but here is a quick look at the most common business expenses and the paperwork associated with them.
A business has to display the total income amount that was generated throughout the year on the return form. Your tax services in Kissimmee would ask you to provide copies of your deposit slips, sales invoices or bank statements that can serve as proof of your income. If you use a software system for bookkeeping, you may also be asked to provide a monthly report highlighting all the deposits.
Depending on the type and size of your organization and the industry which you serve in, business expenses can vary. Still, they would generally include expenses like rent, payroll, utilities, advertising, office supplies and insurance. You would have to provide supporting documents as evidence such as paid receipts, checks or invoices. If the expenses are large, your chosen tax services in Kissimmee might even ask you additional documentations such as payroll forms, pay roll tax returns and other similar records.
Your business autos depreciate at a certain rate every year. The deprecation amount can be calculated by considering the market value of your car, the date on which you bought the vehicle and so on. The expense does not involve any cash, but you have to provide files that indicate you are the owner and have completed all payments.
You can also ask your chosen tax services in Kissimmee to deduct other expenses as well, such as fuel, repairs and insurance. For all of these, you would have to provide receipts. If you use your credit card for these expenses, you would have to provide a copy of your monthly statement.
If you travel for business related purposes such as meeting with clients, providing training to your employees and so on, you can get a return on these items. Please note that travelling does not include commuting from home to office.
The IRS recommends you to keep all the above documents for at least three years from the date on which you file the return. However, your chosen tax services in Kissimmee would probably advise you to store documents for a longer period of time.
If you need more information about our Kissimmee accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.