MY TOP 3 TAX TIPS
by Toni Sears
As a first-time business owner, you are looking for ways to produce the lowest taxable income. In other words, you want the highest tax savings by taking advantage of all applicable tax deductions. How do you figure out what is deductible and what is not? I took the time to research some resources and compiled my top three. Internal Revenue Service
- The IRS is a great ally. They provide written publications that are easily accessible at www.irs.gov
. My favorite is the Guide for Small Business, Publication 334. This document makes it easy for tax preparation of Schedule C or C-EZ users. The discussion of business expenses begins in Chapter 8 (page 31 of the 2016 edition.). This document is the Grand Prix for tax resources. If you opt for an app, check out IRS2Go. This app gives you daily tax tips, lets you know about tax legislation upon release, and connects you with a qualified tax person in your local area. Louisville Free Public Library
- It always amazes me as to the vast resources our local library provides. The Louisville Free Public Library has some great books written by the crew at www.nolo.com. Excellent reference books for any entrepreneur. Check out these two books, Tax Savvy for Small Business and, Deduct it. They use everyday language to help you understand many aspects of the Internal Revenue Code. The most wonderful thing about these books is that you can download them free! Simply go to www.lfpl.org and use the Small Business Reference Center. (Hint: You will need a valid Louisville Free Public Library card and password. Click on research tools then business and money to access the Small Business Reference Center database. Look under Browse Popular Sources.). Expensify
– Claiming to be the #1 expense management app, Expensify allows users to track receipts through patented SmartScan OCR technology to eliminate manual data entry. You literally snap a picture of your receipt and Expensify does the rest. Android and iOS compatible.
Bonus- Want another option for tracking receipts and generating reports on the go? Check out the app Shoeboxed Receipt Tracker. This mobile app links to your personal account on www.shoeboxed.com
. This integration (web and mobile) is a powerful tool for tracking business expenses.
Before gulping down gallons of coffee or squeezing the life out of a stress ball, check out these resources. Hopefully, they will help maximize your tax savings.
Don’t hesitate to reach out to the Louisville SBDC if you would like to share your thoughts regarding this article or simply want to start a meaningful conversation with one of us. We’re here to help. The main office number is (502) 625-0123.