Maintain All Your Financial Records Daily
Use an accounting software application and keep track of all your expenses. Add the amounts you earned to it and also the amounts you spend. Managing this on a daily basis might not be that easy, but if you do it, it would solve majority of your tax problems. You can hire an accountant in Orlando to help you out with this.
Store All Your Receipts and Invoices That You Receive From Your Business Operations
Taxes are incurred on your income, but you can lower the amount you have to pay if you make use of deductions. Business expenses are one of these, so store all your receipts and invoices. During tax time, these would be required by your accountant in Orlando and would serve as proof that your expenses were indeed related to business.
Scan Your Receipts and Invoices
You should get your receipts and invoices scanned so that you have a soft copy of these. Doing this would also help you in integrating them with your accounting software and you would be able to manage your finances in an easier way.
Keep A Track Of The Times You Utilize Your Car For Business Purposes
Do you often make trips for a meeting with your clients or for any other business related purposes? Well, keep a track of this and your accountant in Orlando would be able to use this information to lower your taxes. A good suggestion is to keep a small journal in your car and record mileage in it, every time you make a business trip.
Please note that you would not be able to use the fuel you spend for commuting between your home and office as a deduction.
Use Business Assets To Your Advantage
Business assets are part of tax planning because they can increase your deductions. Assets include furniture, office equipment, tools and anything else that affects productivity of your employees. Bear in mind that you would be able to use this as a deduction only if your purchases are based on the limits set by IRS.
Mention Interest That You Pay For Your Business Loans On The Return Form
Is there any loan that you have availed to finance your business? Make sure that you enter the interest amount on your return and you would not have to pay tax on this.
Use Business Tax Credits To Your Advantage
There are many business tax credits that provide you with various benefits if you fulfill the set criteria. For instance, there is the Work Opportunity Credit, which would provide you with incentives if you employ someone from a field with high unemployment rates.
Record All Relevant Documents
Even when you have received your refund, you should record all relevant documents till after seven years. This also includes those that serve as proof of your income, expenses and so on.
Using Tax Deductions to Increase Your Refunds
Do you want to avail the maximum possible deductions on your taxes and get the highest refund amounts? Sure it does not sound easy but is actually not that difficult as well. All you need is to act smartly and thoroughly analyze your expenses and figure out where you can zero in on them. And there is one more thing; hire a reputed accountant in Orlando who has a significant amount of experience in the industry. Once you are done, you would actually thank him for all his advice.
Here is a quick review to the most common tax refunds that you can avail. While, only a quick review is presented here, your chosen accountant in Orlando can guide you more about this.
Did you recently relocate to another city because of a change in job? Great, if you did because IRS will allow you to deduct some of these expenses from your income. There are other situations as well in which you can deduct these expenses such as if you are self-employed and if your employer just terminated you.
Before IRS provides you with this deduction, they will analyze the distance and time. The distance of your new residence from must be at least 80 kilometers away from your old home. As for the time factor, you must be working for 39 weeks or more in the upcoming 12 months. There are no restrictions on your employer; the only requirement is that you should be employed.
Are you a student and recently availed a loan for your studies? Or did you just buy a home and took mortgage for that? In both cases, you can enjoy a reduction in your taxes. For student loans, the situation is even better because you can enjoy the deduction even if you are not the one who is paying off the loan.
Are you involved with charity or any other non-profit organizations? Donate them generous amounts and utilize them as reductions later on. Even if your donation is not based on cash, you can still avail this deduction. For instance, if you gift books and other study materials or fund healthcare expenses for the needy, you can list down all of these on your tax from.
Home and Office Deductions
Though the IRS does offer home and office deduction, they are particularly strict with this one. As already mentioned, you can enjoy a deduction for your mortgages. Additional expenses which can provide you with a reduction are utility bills, insurance, repairs and other similar expenses.
You can get the above deductions only if your home is used as business place regularly and exclusively. Misuse this policy, and IRS will trouble you.
There are so many times when you have to make a trip for this business purpose or that, right? Jot down all of these and IRS will deduct the amounts from your taxable income.
If you need more information about our Orlando 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.