5 Tips For Filing Business Taxes
In addition to running a growing their businesses, entrepreneurs have to deal with filing taxes. We have put together a list of business tax tips to help give some direction as we approach the end of this financial quarter.
Figure Out What You Owe
This may seem like a simple concept, but for companies that do not have predictable sales, estimating the amount owed in business taxes can be a bit confusing. It is important to double and triple check that you have made the proper deductions, and that you figure in any late payment penalties which may be imposed if you have missed an installment up to this point.
Many small business owners report revenue only when payments are received from customers. For the purpose of making filing business taxes easier, entrepreneurs may want to adjust billing schedules so customers remit payment for goods and services rendered in late 2016.
For businesses which have had a very profitable year, it may be a wise choice to get as much of your business taxes completes, in order to accelerate the processing of claimed deductibles. There is a certain relief going into the new year owing less money in business taxes.
Start Your Retirement Plan
Retirement plans, such as a SEP IRA, offer great benefits to business owners. Contributions made to retirement accounts and 401(k) plans are tax deductible. Because business owners are considered both employees and employers of the company, they can save up to $53,000 per year, based on contributions. There is even a bonus due to catch up contributions added onto that figure, if the business owner is over the age of fifty.
Leased Equipment Is Deductible When Filing Business Taxes
One of the reasons many new and small businesses switch to leasing equipment is because it makes more financial sense than paying a lump sum up front for the tools, vehicles, and machinery they need. What many entrepreneurs overlook, however, is that all payments made on leased equipment are fully deductible up to $500,000. This translates to huge savings when filling business taxes.
Looking For Tax-Friendly Financing Solutions?
If you are looking for financing solutions which are affordable, and which can be deducted on your business taxes, contact Empire Commercial Capital. At Empire Commercial Capital we specialize in equipment leasing, sale leaseback programs, and much more.