Tax Tips for the New Year

January 11, 2019

Tax season is just around the corner. When you run a business, doing taxes can be particularly challenging, but when you have a few tips under your belt, the task can be made easier. Check out these top tax tips for the new year to help you streamline the process and lower your stress levels.

Create a Tax-Paying Plan

As soon as you know your projected outlook of the tax year, create a plan for paying them quarterly. Sometimes, you can do this simply by paying out of pocket, but many business owners take out a line of credit specifically for paying quarterly taxes. Hiring someone to provide Los Angeles tax preparation services can be beneficial since he or she can help you determine the best way and the best amount to pay throughout the year.

Deduct Your Equipment Expenses

Almost every business requires equipment to operate, and although it can be expensive, there is some good news. Equipment expenses often qualify as tax deductions. New and used equipment that you put into use for your own company before the end of the year could provide you with a deduction worth thousands of dollars. Some businesses can also deduct up to 100 percent for depreciation of equipment, and certain types of equipment allow for a bonus deduction of as much as 40 percent.

Contribute to a Charity

According to Encino tax consultants, contributing to a charity has several benefits. Of course, there is the benefit of providing financial help to an organization that you believe in but contributing to charity also makes your business look more favorable to potential customers or clients. Finally, there are the tax benefits. When you contribute to a charity, the IRS allows you to claim a tax deduction, often equal to the value of the donation. However, keep in mind that some types of businesses to do have a cap on what they can deduct for contributing to a charity. Review these guidelines before making your contribution if necessary.

Keeping these tips in mind will help you have an easier time this tax season. Hiring Encino tax advisors is also a good idea if you are not used to filing business taxes.