3 Money-Saving Tax Tips for Businesses

U.S. tax law requires businesses to file returns every year, and if owners aren’t careful, they could end up costing themselves a lot of money. The following are some money-saving  tax tips businesses can use during tax season.

businesses1. Contribute to a charity: When a business donates money to a charity, it isn’t only showing good will. According to the Small Business Association, money, usable items, and other goods can be donated to claim a deduction for the fair market value on a tax return. However, business owners need to be sure to get proper documentation of the donation for the Internal Revenue Service so there is proof that items were actually donated.

2. Write off business expenses: Business owners will want to keep an accurate record expenses, as these can be written off come tax season. According to Quote Roller, some of the most prevalent include home, office, car, and capital asset depreciation. Failing to take advantage of these deductions could lead a business to pay much more in taxes than necessary.

3. Keep records straight: One of the most important things a business can do during the year is keep its record straight. By doing this, there is less time spent during tax season coming up with the necessary documents to secure all the deductions and make sure information is accurate. As a result, a businesses’ accountant will need less time, which translates to fewer billable hours, and money saved. It may seem like busy work at the time, but ensuring records are accurate throughout the year can save money in the long run.

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James F. McDonough, Jr. concentrates on wealth preservation and estate planning for high net worth individuals, closely held business matters and ownership succession, estate administration and income tax planning. He worked for three years for the public accounting firm, then known as Touche Ross, where he obtained his license as a Certified Public Accountant in 1983. In 1984, he was employed as a tax attorney by Union Camp Corporation where he engaged in planning for corporate income deferred compensation, qualified plan and tax-free exchanges. In 1986, Mr. McDonough was employed as Tax Manager for Monroe Systems For Business, Inc. Thereafter, he was employed as a tax attorney for five years where he engaged in corporate and estate tax planning and estate administration and litigation. For more information, please visit James McDonough's full biography at Scarinci Hollenbeck

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