As Kissimmee tax services professionals we know that filing out taxes is not easy; not only are there complexities involved but the process also requires a significant amount of time. This is especially so if you are trying to gain the maximum possible deductions. Avail reputed tax services in Kissimmee, and the process will be considerably simplified. But there is more that you can do in this regard. Answer the questions that we have for you, and you will be surprised at the significant amount of money that you can save in taxes.
Did you travel anywhere in the past 12 months?
There are so many business owners who fail to use the travelling deduction to their advantage. If you seek tax services in Kissimmee, you would not be on this list. Travelling is one deduction that is definitely not worth ignoring because it can bring down your taxes. Act smartly, and the reductions will be even more.
Note down all the time you travelled for business, and IRS will be happy to take it off from your taxable income. Even if your trip has nothing to do with business, you can add a short meeting or lunch with a client or a training session, and it will be regarded as a business expenses. Your chosen tax services in Kissimmee can guide you more about this.
Indeed you can get deductions for business related entertainment and meals as well, but using travelling is more beneficial because it is 100% deductible; others are just 50% deductible.
How much mileage did you put on your car?
This is once again something that so many business owners miss out on. Note down your mileage every time you take your car out for a business purpose. If you cannot do this every time, you should at least estimate an amount by considering the distance and frequency of your travel. Accordingly, use the amount and get it deducted from your taxable income.
Remember that IRS classifies travelling and auto expenses as separate.
Where do you like to eat when at work?
Do you like frequent dinners and lunches? Where do you mostly dine at? Note down all of these and they will appear good on your return. Just remember that the dinners you list are in proportional to your business sales. If your company is still new, do not put too many; doing this actually implies inviting IRS trouble. On the other hand, if you have spent quite some time in the industry, you can write off more meals, and IRS will not have any issues
Which supplies or gadgets help you at work?
Every business cannot be done unless you make use of tools and supplies such as furniture, computers, stationary, and so on. If your business is still in the initial phases, these expenses can burden you. Add them on your return, and you get some benefit.
If there is any other expensive item that you bought that has nothing to do with your company, you should also classify that as a business purpose; use creativity and you will be able to do this.
Keeping Your Receipts Organized
Do you keep all your receipts with you and create multiple backups of them? No? If that is your answer, you are actually inviting trouble from IRS, and if you proceed without caution, you may even have to face an audit. Yeah, we know the situation does not sound good but it is up to you to prevent it.
For once, make sure that you seek reputed tax services in Kissimmee; they will be able to guide you throughout the process while ensuring that you pay the lowest possible amount in taxes and without paving way for any tax problems. Another thing that you can do to assure an easy tax time is to properly record all your receipts. This is one thing that most tax services in Kissimmee stress on, and this one single thing can help you in saving a lot of trouble from IRS in the future.
Keep a record of all your receipts
Keeping a proper record of all your receipts is extremely vital for any business owner. Come tax time, and things would be a lot simplified for you than otherwise. Though we recommend you to keep a record of all your receipts, the IRS policies state that you do not have to do this for expenses that are less than $75. Just to be on the safe side, you should save all your receipts.
Have multiple backups of your records
Great, so you properly recorded all your receipts. Now what if something goes wrong and you lose all of this data in a fire or a hard drive crash. What would you do in such a situation? No answers, right? We suggest that you should have multiple backups of your receipts. Other than this, be sure to have both soft copies and hard copies.
Use an accounting software
An accounting software system makes it fairly easy to track your expenses, and offers many other advantages as well. If you are not a technical person, you may have issues with this, but do not skip it out or you would be missing out on a lot. Just use a reputed tax services in Kissimmee, and they will be able to help you out with this.
Maintain your records for at least six years
Keeping all your records may use up an ample amount of both virtual and physical space. As such, you should do this for at least six to seven years. If you can do it for prolonged periods, it would be even better. The IRS can be quite unpredictable at times, so do not be surprised if they come knocking on your door and ask about records dated six years ago.
Decorate your receipts with notes
This may actually sound weird to you right now, but in the future, you will be glad you did this. There is no way you can remember the details pertaining to every receipt, so make sure you right them down on it. When doing so, specify the business purpose clearly.
If you need more information about our, Kissimmee accounting and tax services, please contact us at 407-502-2400. 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.