Small businesses are the backbone of ExpressIRSForms, too. Well, maybe more like the nervous system, coordinating and transmitting signals where necessary. What we’re trying to say is that we genuinely appreciate you choosing to e-file your important tax documents with ExpressIRSForms, and we want to help you grow just as you’ve helped us.
While a majority of what we’re able to do to help small businesses has past (you know, the e-filing part), we can still impart some wisdom to help you with your taxes throughout the year, not just during tax time. So here are five tax tips for small businesses as we make our way through the middle of 2016:
- Keep detailed records as you spend money. And if you’re not the type to remember to write things down, search the App Store or Google Play, because you can bet there’s an app for that!
- Don’t mix business and pleasure. As in other situations, financially, business and pleasure just don’t mix. If you’re not incorporated, you’re not required to keep your money in separate accounts. But you might want to get a separate account anyway to keep your business expenses separate from personal, making it easier to keep track of the money you spend (see Tip #1).
- Track miles driven in your car. You can calculate deductions for business use of vehicles based on miles driven (at 54 cents/mile) or based on actual expenses. If driving is your business, check out our sister product, TruckLogics, an app that helps truckers keep track of mileage and other expenses while on the road.
- Keep it in the family. By employing family members, it’s possible to be eligible to deduct their wages as a business expense (similar to how you can deduct your home office expenses). In turn, this minimizes the amount of taxable income you’re on the hook for.
- Add vacation time to business trips. If the primary purpose of your trip is business, you can generally deduct travel expenses like airfare, lodging, ground transport, and 50% of meal costs. So why not add a few days to the end of your trip to relax? Keep in mind though that expenses that are strictly personal cannot be deducted.