Top accountant Pauline Ho founder of Laus Consulting Services LLC in Orlando, FL, explains that many small business owners miss valuable tax deductions that could save them significant money over time. For more information please visit https://lausconsult.com
-- Small businesses could be missing out on a raft of tax deductions they could claim back and save hundreds in U.S. dollars over the long term.
For more information please visit https://lausconsult.com
Pauline Ho, CPA at Laus Consulting Services, LLC in Orlando, FL, said owners are eligible for tax breaks on everything from meals and travel costs to pens, technology, furniture and healthcare.
For most, a vehicle is essential to the lifeblood of any small company. Costs can be deducted in one of two ways. One is to take the tax year’s standard deduction and multiply that by the number of business miles completed. Or track all costs related to the vehicle and multiply the total by the percentage of the business mileage for that year. Either way, business-related tolls and parking fees can also be deducted.
Ho emphasized that business owners shouldn’t neglect to claim deductions for cellphone and internet usage. A different phone is recommended for business rather than personal use. That way, deductions can be maximized as business-related calls can be better tracked to support a claim.
“Alternatively, you will need to work out the percentage of use dedicated for business and deduct that from your overall phone bill as a business expense,” Ho said.
Company owners are eligible to deduct 50% of meal costs as long as they are for business reasons, such as working lunches with staff or business contacts. She advised they keep detailed records of the date, location, and business purpose of the meals, along with the bill receipts, to back up such claims.
If a company owner combines business with a holiday while on their travels, they can deduct a percentage of the costs related to the business component, she highlighted.
A sole proprietor, business partner, or a limited liability company may also recover a percentage of healthcare costs if they personally pay for individual coverage.
Ho said other deductible business expenses include business rent, legal fees, advertising, and everyday items, such as pens, paper, printer ink, and postage. Larger purchases, such as computers and office furniture, may qualify for deductions or bonus depreciation, allowing the full cost to be written off in the same tax year.
Home office expenses can also be deducted if part of the home is used exclusively and regularly for business. These aspects, such as mortgage interest and insurance, are calculated based on the percentage of the home used for business.
She added that salaries, bonuses, retirement plan contributions, and employer-paid health insurance premiums are all deductible. Payroll taxes paid by the employer also qualify, as well as premiums for business insurance, such as general and professional liability, workers’ compensation, and cyber protection. Business licenses, permits, and industry-specific certifications may also apply.
Ho concluded: “Small business owners may be surprised at the extent of reducing their tax burden. They should consult their CPA or accountant to understand these complex matters to ensure accuracy and compliance with IRS rules.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com
Release ID: 89179807
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