Category Archives: corporate tax

Tax Made Easy – 7 Usefull Tips For Business

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Photo by moppet65535 Tax Made Easy - 7 Usefull Tips For Business

For many businesses, especially small businesses, taxes can be quite a handful. Moreover, it’s not just paying taxes, it’s knowing what can be taxed and/or deducted. So, we made a list of things every business should know about taxes, along with various tips for your business tax. This will help make our tax life a lot easier.

Make sure you keep Track of Everything

While we realize this may seem like one of the most obvious tips for your business tax, many businesses forget to keep track of everything. Every expense, purchase, deduction, refund and even car mileage –  keep track of them all. This helps you file accurate taxes. Remember, an inaccurate tax filing can lead to legal problems.

Separate your Expenses

One of the most important tips for your business tax is to always set apart your business expenses from your personal ones. Your personal expenses are not tax deductible while your business expenses are. Therefore, always keep them separate so you know how much you can deduct from your taxes.

Be Generous

If you have unsellable software, goods or equipment just sitting idly in your office, donate them to another business or to individuals. This will enable you to be eligible for a number of tax deductions.

Provide Benefits rather than Raises

One of the most basic tips for your business tax is that many goods and services are tax deductible. For example, if you purchase a business car, it’s tax deductible. If you purchase health insurance for your employees, even that is tax deductible. Therefore, instead of giving salary raises at your next performance evaluation, provide benefits instead. Not only do you have happier employees, you save on your taxes.

Make your Car a Business Car

This has got to be one of the best tips for your business tax. Many of us require a car to commute to and from work. In fact, we need the car to travel around the city when we are working. If you require a car, purchase one for ‘business purposes’ and log its miles as a mileage deduction. Since the car is registered to your business, it becomes a business expense and hence, tax deductible.

Pay for your Benefits, Deduct them from your Business Tax

One of the best tips for your business tax may seem rather awkward at first. If you have your own business, one of the best things you can do is hire your spouse. Once you have hired your spouse, provide them health insurance. Inadvertently, you are providing yourself and your family health insurance. Best of all, this is tax deductible. This could just be the most affordable health insurance ever!

Save yourself from Bad Debt

There are many tips for your business tax that are not well known. For example, deducting bad debts. Many businesses provide loans and lines of credit to their customers. For example, clothes bought with a credit card. If you can prove that a customer bought goods and cannot pay it back, if it’s an noncollectable account expense, you can claim for a business tax deduction.

Tax Made Easy - 7 Usefull Tips For Business

Bipartisan Changes Needed To Reduce Debt

Reduce Debt

Spending cuts and reforms to government entitlement programs are very necessary, according to an interview with House Minority Leader Nancy Pelosi on National Public Radio. The interview was broadcast nationally on Thursday morning. Pelosi said that she feels the government should be scrutinizing every dollar in the budget in order to reduce costs and prevent future generations of Americans from paying for financial mistakes made today. This applies as much to the defense budget as it does “on the domestic side,” she said.

Bipartisan Changes Needed To Reduce Debt

English: at a rally opposing reform (Photo credit: Wikipedia)

Other segments of the interview featured Pelosi praising the recent budget agreement, saying the rise in taxes on the most wealthy Americans brings “more fairness” to the policies. She also said she hopes that reforming programs such as Medicare and Social Security will extend them for future generations, and make them stronger today. While she supports reform of these entitlements, she does not support any cutbacks in their benefits.

If the current spending levels continue the U.S. will be $4 trillion in debt within a decade, according to the Congressional Budget Office. In order to prevent this, there it is necessary to seriously reform the nation’s largest entitlement program, Medicare.

One possible reformation of the program was proposed in the New York Times in May. Ezekiel J. Emanuel, a professor at the University of Pennsylvania, proposed what he calls “graduated eligibility.” This system would offer Medicare coverage earlier for older Americans who live in poverty, and would push the date for wealthy Americans past 70-years-old.

There have also been other proposals for reforming the entitlements, but none have been embraced by more than a handful of Democrats. The majority of liberals refuse to consider major reform to Medicare or to Social Security.

The Republicans aren’t in the free and clear here, either. Their refusal to accept the reform of corporate taxes that create more of a tax burden for the nation’s largest companies is as dangerous as the lack of comprehensive entitlement reform. While the recent deal ended a payroll tax holiday that means the middle class will once again pay more than 6 percent of their paychecks to the government, it also gave more than $46 billion in tax breaks to corporations.

Without Republicans asking more from corporations and Democrats agreeing to scale back entitlement programs like Medicare and Social Security, the current government debt will continue to grow. Taxpayers deserve a bipartisan effort to truly be accountable for budgets and government spending, but it seems to be little more than a fantasy right now.

Bipartisan Changes Needed To Reduce Debt