Payment of taxes on time is an important affair and needs us to give it attention. Business owners who belong to small enterprise groan when they hear the word tax. But no matter how much we avoid, taxes are a part of our lives and we need abide by the law. If you belong to the small business community, then it is important to get tax preparation checklist in advance from experts.
No matter what nature of business you do, you can’t skip the nature of taxes. However, the process of taxation can be different from individual to business owner. A business owner needs to check methods of tax deductions for business and work accordingly to avoid coming under the scanner of law. If you are a small business owner and want to know how 2018 can be a good year in tax regime, then we bring you tax preparation checklist:
Know Your Tax Deadlines.
Don’t want the IRS hovering over you? Make sure you know the deadline of the tax payment and clear the tax way in the advance. Never wait for the last moment of the tax payment deadline, as it can clash with your business commitments. Make a tax preparation checklist, i.e. mark the deadlines on your calendar for all the taxes you need to pay. In case you miss the tax due date, you will end up paying the penalty, and no small business owner would invite a penalty.
Though the rules set under tax regime is quite complicated and strict, but there is a tax extension of six months from the original due date. In many cases, small business owners undergo a busy season during tax payment, which eventually result into missing the deadline. By filing an extension, business owners get time to do the paperwork.
Tax- Deferred Retirement Plans.
If you are looking forward to save on taxes, you can look at getting a tax-deferred retirement plan. This helps you save for your retirement and lessens your taxable income. Well, this seems not a bad idea though.
Tax deductions for business lets you use for business related expenses to lessen your taxable income. However, it is essential to have right documents filed to support your expenses claim. You need to keep a thorough report of expenses your business witnessed helping to claim deductions. Be it the entertainment, property, vehicle purchase, or maintenance, etc.
If you are planning on passing the business to your successors, well, save yourself the estate taxes. So, you get charged if your property doesn’t goes to our spouse or charity. Save the amount you’ll be paying and get a decrease in your taxes. Giving little interests as gifts is a great idea as it becomes really hefty for kids or inheriting person to pay the estate tax rate. Don’t burden your successors after you are gone. Be economic and give them as a part of the gift. This will certainly help you in saving money on taxes.