April 15th. You know its coming every year but somehow it still manages to sneak up on you. Atleast this year you have a few extra days to prepare (the deadline extended to April 18th). As you get ready to submit this year’s returns, take a look at the recommendations below and then get started for next year with some suggestions to keep you on track.
Claim What You Can
- Make sure you list all business expenses. Though it may not be listed by the IRS code, any expense that is “common in your industry” and typical for your line of work should be listed as an “ordinary” expense.
- Credit card and other interest is tax deductible as a business expense.
- Check if your business qualifies for any credits for healthcare, bonus depreciations, and retirement plan contributions.
- Double check that you listed any charitable donations from the past year.
- Review your financial statements on a regular basis, quarterly if not monthly. Then you will be sure everything is organized and save yourself time down the road.
- Get an accountant (with a CPA) that will back you up. Make sure you select someone reputable who you can ask questions when necessary.
- If you know you wont be ready, file for an extension! Just make sure your taxes are paid on time.
For more information and tips, read this article from OpenFORUM.