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What do you know about filing taxes as a small business owner?

On Behalf of | Aug 11, 2020 | Business Law |

While it is great to have your own business in Ohio and work as your own boss, handling taxes is not one of the more exciting aspects of working for yourself. Despite that, you must know the proper way to file your taxes and reduce your tax bill.

Before the next tax season rolls around, ensure that you and your business are ready. Proper preparation can help keep you on the IRS’s good side.

Determine if you can deduct property

Some business property used for manufacturing, transportation, research and research qualify for a tax deduction. Such property is “Section 179 property,” but the total amount of such property only qualifies for deduction for the year you started using it for your company. If you recently purchased new equipment or property, or if you moved business locations recently, speak to a commercial accountant about how to make the most of this deduction.

Look into the health care tax credit

Does your business employ fewer than 25 full-time workers whom you pay an average yearly salary of less than $50,000? If so, talk to an accountant about claiming the health care tax credit if you cover at least 50% of employee medical benefits.

Take advantage of miscellaneous deductions

If you handle ATM card fees, travel out of town for business or use periodicals for your business, you may qualify for miscellaneous business deductions. This is one reason why it is a great idea to keep up with all receipts for business transactions.

Keeping business taxes in your peripheral all year long can help ease the stress of filing. Now you have a better idea of how to meet your tax obligations and protect your company.