DIY: year-end accounting and tax tips.


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As tax time approaches, many people start to stress and dread the thoughts of getting their accounting records up to date. Here are some links to make this years accounting and tax preparation less of a hassle.

1. If you make under $66,000 read this article on CNBC.com for free tax preparation :

https://www.cnbc.com/2018/11/16/how-to-get-your-taxes-done-for-free.html?fbclid=IwAR0x61qLxkOgU_cUoJ1335jLS8PsPBRJdYzQXnnA5sSR7KpyTkE6wT5K074

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2. If you own a small business make sure you take advantage of all tax deductions. Look here for additional small business deductions on the IRS website :

https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses#what

3. Track your spending in QuickBooks Online. The software will automatically import your bank transactions, you choose the category and click enter. It's never been easier. Instantly create reports for Profit and Loss, Balance sheet and Cash Flow. QuickBooks ProAdvisor offers one and a half hour online QBO training and then gives a 50% discount on software subscription.

Click here for QBO Training offer

4. If you use a tax preparer or do your taxes yourself make sure you organize your data this will help you through the process and save you money if you pay a preparer to do it for you. here are some tips from Intuit Turbotax regarding organizing your records.

https://turbotax.intuit.com/tax-tips/tax-planning-and-checklists/making-taxes-easy-tips-for-organizing-receipts-and-expenses/L2XGRq7xA

5. If your business is a S-Corporation beware that the IRS is auditing for reasonable compensation. Avoid over 7 penalties and interest by having a reasonable compensation report in your corporate minutes. Read this article on Forbes.com regarding the increased audit.

https://www.forbes.com/sites/forbeslacouncil/2018/12/28/will-there-be-a-rise-in-irs-audits-of-s-corporations/?fbclid=IwAR2h-r7Xdt6szSwpmVHnV7NYBIm1u7XfT3NIVxWXYr3uJGOkCI5qa4reeCM#2c11db61261e

6. If your business is an LLC or a sole proprietor consider making a small business election. Read my other post regarding realtors and the S-corporation. It doesn't just apply to Realtors many businesses can become an S-Corporation and have the same benefits.

https://www.tascpublicaccounting.com/single-post/2019/03/08/SHOULD-A-REALTOR-ELECT-TO-BE-AN-S-CORPORATION-OR-STAY-AN-LLC-1

7. Business returns are due March 15th, Individual returns are due April 15th. Both types of returns can be extended and will be considered on time if filed by the extended date. Cant file by the due date use free file to file the individual extension paper work.

Remember tax payments are due quarterly and if not paid in by Jan 15th the remainder is still due by the original due date. however an extension will reduce penalties. Get more information on IRS website:

https://www.irs.gov/newsroom/cant-file-by-april-15-use-free-file-to-get-a-six-month-extension-2013

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