Yes, I know. This time of the year can be a difficult one, both for personal and business reasons. After all, I do not know anyone who honestly looks forward to tax time, but since there is no way we can get around it, why not make the most out of the situation and get it over with as painlessly as possible? Here are some quick tax tips that can help you do just that.
Keep your records straight.
The people over at the IRS are no fools, and neither will they suffer fools gladly. They know that small business owners will look at every opportunity to get tax breaks, and believe me, they know every trick in the book. As such, do not go overboard with those deductions. If I were you, I would keep my records as straight as possible, keeping every single receipt for business-related expenses. As long as you are not doing anything shady and you have a solid paper trail, then you should be good.
Avoid home state tax if possible.
This works in most states, where the law says that if you earn your income outside of the state, then you do not have to pay taxes on that income. Of course, this is entirely dependent on the laws in your home state so make sure you know exactly what is stipulated.
Going green pays.
This works two-fold. One, you contribute to the conservation of the environment. Two, you might get incentives from the federal and state government. Again, you have to check what kinds of green initiatives are included in the incentive program.
(to be continued)