As the year comes to an end, it’s easy to find yourself overwhelmed as you try and wrap things up and close out the books for the year. Depending on your business, you could be frantically trying to send out 1099s, receiving final payments, etc. And once all that is wrapped up, you likely are looking to get started on your tax return for the year. However, it’s important that you not jump the gun and overlook important details. One such detail is that last estimated tax payment for the year. When is it due? January 15. This is probably the most overlooked payment for the year, as some people get mixed up as to which year that goes toward. Yes, you pay it in 2017, but the payment will go towards the previous year. Failing to make the payment can leave you short for the year, which could cause penalties—not to mention you could end up owing rather than getting a refund. So whatever you do, make sure you make that final payment on January 15. For more info on important tax dates, Contact us today! Like us on FaceBook.
When it comes to gathering and organizing all of the different tax preparation records and information for your business tax preparation- the papers can stack up quickly. The accumulation of years of tax returns, receipts, and other important business information could take several days to sift through. People wonder if it’s even necessary to hold on to any of their tax records and documentation. The truth is that while it’s extremely important to keep certain business and personal tax information available and readily organized, many of these documents only need to be kept for a maximum of six years. The following documents that deal with tax preparation should be kept for at least six years:
- Tax receipts
- Business records
- Employee business expenses
- Closing papers from the sale or purchase of a home
- Investment records
- Payroll records
- Tax Returns
- Inheritance records
- Stock and bond basis records
- Pension Documentation
While you need to start thinking about preparing your 2014 taxes, you also need to shift your thinking to the next year. Since you have a fresh start, you want to try and implement some of the following tips to try and reduce next year’s taxable income.
- Buy things you need last minute. Buying at the very end of the year is a good way to take advantage of deductions. However, don’t buy unless you really need it. Spending money is still spending money!
- Give, give, give. Not only do charitable donations represent one of the best ways to cut down your tax bill, but they also help other people and make you feel better about yourself. Just remember that your volunteering time doesn’t count.
- Maximize home office deductions. You can take a deduction of $5 per square foot on your home office. You are able to do this up to 300 square feet. Make sure though that your home office really is exactly that. You have to be able to prove it if you should ever be audited!
With the year quickly coming to an end, you’ll definitely want to make sure that you have all of your tax information sorted, organized, and ready to be archived or handled appropriately. The transmission into a new year can sometimes be hectic, especially for businesses, and when you have the chance at being audited, you’ll definitely want to have confidence that you’re handling all of your tax information and documentation correctly. Not only that, but you’ll want to be sure that you’re dealing with your company’s tax and accounting data in a timely manner. If you don’t, paperwork can add up quickly and you can get behind before you even realize what is happening. Dealing with any company’s taxes and all of the consequent documents, information, and numerical data can be an extremely huge task. That’s why when it comes to your business’s tax dealings, you should employ the help of an experienced accounting firm, like Brennan & Company, CPA. Just a few of the services that Brennan Tax has to offer include:
- Preparing financial statements for auditing
- Taking over all of your company’s accounting needs
- Providing tax representation services
- Offering payroll services
- A variety of consultation services
Tax season may seem like a long ways away, but you need to be thinking about your tax obligations over the summer. Some of the things that you do over the course of the summer months can impact your taxes, and you should consider talking to a tax professional at Brennan & Company CPA, PC.about what you should be doing now so you are ready when April comes. One thing to be aware of is that summer camp expenses may be deductible expenses. It is possible to claim expenses for summer camp if you are working. This is because the summer camp can be considered child care, and child care expenses may entitle you to a tax credit. You should also be aware that if you have a garage sale or a yard sale, you may need to declare income that you make. This depends upon what the cost of goods sold was and whether or not you make a profit. If you are one of those lucky “trash pickers” and find a valuable or rare object among the junk at a garage sale, such rare finds are referred to as a “treasure trove” and are immediately taxable to the recipient. Brennan & Company CPA, PC. can help you to be prepared for tax season or any season. Call us at 215.951.5585 or “like” us on FaceBook .
There are many different things that you need to do in the United States in order to comply with the tax laws and avoid facing penalties imposed by the Internal Revenue Service (IRS). Failure to fulfill any of your obligations could end up costing you a lot of money as you end up paying back taxes with interest and, in some cases, you also end up paying penalties and fees. A professional tax preparation service can help you to understand the things that will trigger a penalty and can help you to ensure that you don’t get hit with unexpected expenses. For example, some of the different things that could end up resulting in you getting hit with a penalty include:
- Not purchasing insurance as required by the Patient Protection and Affordable Care Act (PPACA)
- Underestimating your income and qualifying for subsidies under the PPACA that are too large
- Failing to file and pay your taxes by the deadline
- Failing to submit quarterly estimated taxes for self-employment income