The prevailing fiscal climate has put most small business on the brink of closure. This has been as a result of a myriad of reasons ranging from intense competition from stiff competition from big corporations to a rigid tax regime that is not friendly on small operators at all. It is important for owners of small businesses to actually learn how to reign in the tax cost so that their businesses stay afloat. There are several tax tips that these small business owners ought to incorporate into their operations if they are to have a chance of surviving the prevailing economic conditions. These tips will ensure that they are in good books with the IRS.
The first tip has to do with procrastination as concerns filing of taxes. You gain nothing by delaying tax filing. If anything, you are creating problems for yourself as well as your business. The year or prevailing conditions might be really bad, but the tax collector has to get his dues despite the tough conditions. Instead of dilly dallying and risking some serious fines or a closure, just sort everything out, compile them in an orderly way and then file the tax returns in time. Those who are prone to panic attacks should ensure that they do their filling in good time to avoid return attacks just because of something that could have been avoided altogether.
Avoid thinking too much about the tough economic situation and forge on. This can serve as a serious detractor which will only get you into trouble. Despite the tough times, you will still owe some money in form of taxes. Maximize on net refunds which are as a result of the net operating losses. You might be wondering, when will my tax refund be mailed? Get down to a qualified tax accountant as these refunds tend to be quite substantial and they can help you bridge the tax gap without much hustle. Consult with a qualified accountant as he is the one who is best placed to deal with these refunds. Start appreciating depreciation and identify things that you can take away from your business without hurting the business.
Section 179 of the federal law has provisions for depreciation deductions. There is fast depreciation costs which can be used to save dollars that otherwise would have gone to the taxman. The saved monies can be used for other activities within the business which will end up cushioning the business from further ravages by the economic storms out there.
- Tips on Reducing Property Taxes (2009taxes.org)
- 2010 Tax Return Mistakes To Avoid (2010tax.org)