Boston, MA Tax Lawyers
The time for filing your tax returns always seems to come around too quickly. However, there is no reason to dread this time of the year. As a small business owner there are many provisions you can take full advantage of and save substantially on your tax returns.
The key is to remain updated of incentives and deductions so that you can determine what you qualify for. Boston, MA tax lawyers point out that tax laws constantly change every year with the IRS modifying or adding several deductions and credits. Moreover, the eligibility for deductions and income brackets keep changing as well.
Plan ahead to save tax dollars
The first step as a small business owner to reduce taxes is to plan ahead so that you can handle taxes efficiently. Those involved in the business of construction, architecture, and engineering are eligible for a domestic production activities deduction. This also applies to those in the film production business and the sale or rental of US manufactured equipment. Deductions up to as much as 6% can help you end up with substantial savings in tax dollars.
Go green to claim tax credits
Being a socially responsible business can help you gain tax credits. There are many things you can do to go green, which includes making your commercial premises more energy efficient, purchasing hybrid vehicles, and more. Each state has different laws related to tax credits, so you will need to check with the authorities for incentives available for your business.
Hire family members
As a small business owner you are eligible to hire your teenagers and pay them a salary in order to avail of tax deductions. Your income tax liability can be reduced by making the children, who would be in a low tax bracket, contribute up to $4,000 in a Roth IRA. Small business owners can also take advantage of deductions under Section 179 of the IRS code for depreciation on equipment that includes machinery, computers, furniture, vehicles, and more, according to Massachusetts tax attorneys who can be found on USAttorneys.com.
Now if you want to see a business where they employ their own children you can watch Gold Rush: Alaska on Discovery Channel which is a marvelous show. There is a character or a person on this show (it is real, no actors) called Tony Beets who is controversial and many people do not care for him because he does not treat other people well but that is another story.
Now his two children are adults not but he employed them when they were teenagers and children and not only did he probably obtain some tax benefits by using them, he obtained some loyalty and his children had a solid paying job. It make sense from any angle you look at it to employ your children if they can do the job.
Deductions on office space
While you may operate your business from home, it is necessary to understand that you can still claim deductions on the percentage of space you occupy for your business which Boston, MA tax lawyers can explain to you. You will need to divide the total work area by the total square footage of your home.
Deductions can be claim according to the percentage on home-related business expenses like mortgage, rent, electricity, and more. Deductions can also be claimed on the purchase of office supplies. However, remember to retain all the relevant receipts in order to be eligible.
Remember, tax laws are complex. There is a lot to consider when filing taxes and dealing with the IRS. No matter what tax problems you may have including tax liens and IRS audits, all you need is a dedicated Massachusetts tax lawyer. This is the best way to make sure you comply with all of the laws and regulations that govern the financial space.
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