Diminishing The Spook of Tax Season

As the weather starts to get cooler and you begin to shop for your halloween or harvest decorations, it is our dedication to make sure to keep you updated and motivated on this financial journey. Scary Halloween costumes aren’t the only thing that can get you in a fright this season. As discussed in last month’s previous blog, we encourage you to prepare for the infamous tax season before it arrives.

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We would like to share one of the best strategies to diminish the spook out of tax season this year, and that is by making sure YOU are informed of what can potentially be a tax deduction for your personal/business tax return! Knowledge is power and though you have a well-known tax preparer handling your income tax, it is vital for you to know what questions to ask and what information you should provide to your preparer to ensure you are compliant with the IRS and that you are getting all the deductions declared that you qualify for. The following are 10 possible deductions that you can claim for your business (for the complete list, download now):
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1. Accounting Fees: ​Fees that you have paid for the use of accounting/bookkeeping (this includes consultation fees as well)               
2. Bank Fees (Business not Personal): These fees may range from check/bank processing fees, credit card fees, charges to have that respective business account, and returned check charges.                       
3. Membership Fees (Business Use): You can claim all of the costs paid to be apart of networking groups, Chambers of Commerce, and any group that required a fee for membership that is used to promote your business.  
4. Business Travel: Any travel, lodging, and meal expenses used exclusively for business.                                                                        
5. Education/Training courses for you or employees:
   These include continuing education courses, online trainings, licensing courses, and career-specific trainings.                                                     
6. Employee Pay:  Whether paying your employees on payroll through w-2s or sub contractors on 1099s, it is highly encouraged to use this deduction on your business return.                                                                         
7. Client Entertainment:  Any costs that were made in order to discuss business matters or to make a client transactions. More common costs are: meals, golf tournament, lunch meetings, and other outings. You must be able to prove that this meeting was a sincere business meeting.           
8. Equipment & Tools: Any equipment and tools used in order for you to conduct business. For example, a photographer will be able to deduct cost made on any cameras, camera stands, and other equipment needed in order for him to perform his job.                                                           
9. Repairs: Any cost of repairs needed on any equipment, cars used for business, or tools in order for you to complete business.                           
10. Home Office Use: Yes! If you use your home as an office space you are able to write-it off on your taxes! However, just like Uncle Sam, there are some limitations. You will have to measure the exact square footage of the area you use to conduct business and claim that on your taxes. As well, add the total amount of utilities used in your home and they will calculate the percentage of use that will qualify as a tax deduction for that year.

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As a reminder friends, always keep receipts and proof of all of the expenses made for the respective tax year so that in case anything happens you can provide and prove that these expenses were made. We also encourage everyone to constantly ask questions and be informed of the tax deductions you may qualify for, even if you are not preparing your own taxes. It is your business, so take care of it and make sure to always ask your tax preparer questions! It is our job to not only inform you but to make this tax season spooky-less (if this were  a word...). Prepare, get informed, and get organized for this upcoming tax season and Diminish the Spook for this Tax Season!

Much Love,

Natalie & Roz