Professional Tax Expertise is a Must for Small Business Owners

If you own a small business, you might feel like you can handle your taxes on your own. However, doing so is really not advisable. That’s because tax professionals can help in so many ways that you might miss out on otherwise.   

For example, the right tax professional can help you to save money, save time, and just get better set-up, financially speaking, for years to come.

What to Look for in Your Tax Pro

Of course, in order to receive the maximum benefit of a tax professional, you have to hire the right one.

Look for someone who is very familiar with tax laws, including the modern and currently-changing ones. A tax professional without the right knowledge is not going to be of any real use to you!

In addition to looking for someone who knows his or her stuff, look for someone with the right title and the right credentials to go along with it. Good tax professionals for help with small business taxes include tax attorneys, certified public accountants, and enrolled agents.

In addition to having a good title, look for a tax professional who is experienced at working with small businesses like yours. To protect yourself, you also want someone who has registered as a tax preparer with the IRS and who has a paid taxpayer ID.

Benefits You’ll Enjoy

Once you’ve hired a good tax professional, you’ll enjoy many benefits.

To start off with, you’ll have someone to help you with tax planning each year and at key points throughout the year.

You’ll also have someone to prepare your taxes for you if desired, and you’ll also have someone who will have your back and help you prepare in the off-chance that you get audited by the IRS.

As you can see, having a tax professional on your side is definitely worthwhile; you just have to get out there and find the right one!

Real Estate Decisions that Affect Your Taxes

People are often surprised to find that buying a home greatly affects their taxes. Some of the effects of becoming a homeowner, such as suddenly qualifying for new tax write-offs, can be positive. Others, such as tax liabilities, can be negative. However,  if you’re smart about your purchasing decision, you can buy a home and benefit greatly, instead of buying a home and regretting your decision come tax-time.   

For best results, hire a financial adviser who can help you to make the right decision about when and how to buy a home and what to do (and what NOT to do) after you’ve purchased one. At the very least, though, do your research on how different choices will affect your taxes, and make decisions that will benefit you both now and in the long-run. To help you out, we’ve looked into some common real estate decisions and how they are likely to impact your taxes.

The Reality of Refinancing

Many  people think that refinancing will help to solve all of their financial problems. They believe that if they can just pay a lower mortgage each month, they’ll get back on track or maybe even be able to pay off their home loan more quickly. And, while these things are sometimes true, there definitely can be some major drawbacks to refinancing.

To begin with, when you refinance your mortgage and pay less interest, you’ll lose that sizable mortgage interest deduction you’re probably getting…or that you SHOULD be taking advantage of.  If you’re not taking advantage of this option, doing so and seeing the results could cause you to think twice about refinancing.

The bottom line is that refinancing DOES work for some people, but it can have disadvantages, so make sure that you are considering all other options, as well as ALL the effects of refinancing, especially as they relate to your taxes, before you make this decision.

The Effects of Remodeling

You might not think that remodeling your home has anything to do with your taxes, but, in truth, it actually does! That’s because remodeling your home can increase your home’s value, which, if you sell your home, could mean that you actually make a profit on the sale.

If you don’t want to risk getting charged a capital gains tax, make sure you have proof of all the remodeling that you paid for. That way, you can include the amount spent on remodeling in the “purchase price” of your home and avoid getting taxed for the full amount for which you sell your newly improved home.

Also bear in mind that, depending on where you live, some remodeling projects, especially those that make a home more energy efficient, can qualify you for tax credits or other incentives, so definitely don’t miss out on these “bonuses” if they’re available to you.

As you can see, your home and the things you do with it can affect your taxes in many ways, some good and some bad. For best results, work with a tax professional to make real estate decisions so that you can get more of the “good” and less (or none!) of the bad.

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Tax Breaks You Need to Know About

It’s hard to believe, but tax season is upon us. Hopefully, you’re already in the process of sorting through your tax documents and/or of finding a tax professional to assist you. While you’re working on your taxes, however, make sure you don’t overlook some key tax breaks that can really help tax time to go in your favor this year.  

Can’t-Miss Tax Break #1: The Retirement Saver’s Credit

Have you been putting money aside in a retirement account? If so, then you’re entitled to the saver’s credit! If not, by the way, then you really need to get on that; it’s never too early to start planning for retirement.

If you have been a good little saver, however, you can receive a tax credit of up to $1000 if you’re single and up to $2000 if you’re married. There are certain income limits, though, so check with your tax professional before just assuming this credit applies to you.

If it does, however, you’ll save some money and reduce your tax liability at the same time; talk about a winning combo!

Can’t-Miss Tax Break #2: The Moving Expense Deduction

Did you experience the stress of a move in the previous tax year? If so, and if that move was due to a change in your employment, you might just be in luck. Those who relocate for work are typically eligible to write off some of their moving-related costs.

The main catch is that your new job needs to be greater than fifty miles away from your old one, thus necessitating a move. If you can meet that criteria, then you’re generally good to go and can deduct everything from fuel costs to the moving company’s fees. If you have any questions about what is or is not deductible, though, be sure to ask your tax adviser.

Can’t-Miss Tax Break #3: The Earned Income Credit

The Earned Income Credit is a credit that’s extended to those who fall within certain, lower-end tax brackets. You may be eligible for it if you’re 25 years of age or older, are not counted as a dependent for anyone, and have an income that falls within the allowed tax bracket based upon your financial situation.

Your credit can vary from around $500, if you have no children, to as much as $6000 or more if you do. To find out if you’re eligible and, if so, how much of a credit you can enjoy, be sure to talk with your tax professional.

As you can see, there are lots of ways to come out on top when it comes to your taxes this year. However, you’re bound to miss some of the best credits and deductions if you don’t have a knowledgeable professional working on your behalf. Find a tax expert to help you make the most of your taxes this year; you won’t regret it!

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