Business Tax Prep Checklist
Business Income and Expenses
Gather all income records, including:
- Gross receipts from sales or services
- Sales records
- Returns and allowances
- Business checking/savings account interest
Compile expense records
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
Let’s break down the key areas you need to consider:
Wage Earners: Maximizing Your Employment Benefits
- Advertising
- Vehicle expenses and mileage
- Commissions and fees
- Depreciation
- Employee benefit programs and insurance
- Office expenses and supplies
- Rent or lease payments
- Travel, meals, and entertainment
Deductions and Credits
Some often-overlooked deductions include:
- Home office deduction (if you use a portion of your home regularly and exclusively for business)
- Professional development expenses
- Bank fees for business accounts
- Subscriptions to professional publications
Retirement Contributions
As a business owner, you have access to powerful retirement savings tools:
- SEP IRA: You can contribute up to 25% of your compensation or $69,000 (for 2024), whichever is less.
- Solo 401(k): This option allows for both employee and employer contributions, potentially allowing you to save more for retirement and reduce your current tax liability.
Before the year ends:
- Review your business structure (sole proprietorship, LLC, S-Corp) to ensure it’s still the most tax-efficient option.
- Consider accelerating expenses or deferring income to manage your tax liability.
- If you’re planning major equipment purchases, look into Section 179 deduction limits and bonus depreciation rules.
Remember, proper preparation isn’t just about avoiding problems—it’s about seizing opportunities. Let’s make this your most financially rewarding tax season yet.
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