Common Small Business Tax Myths You Should Know
Tax laws are complex, especially when you open a small business. The plethora of misinformation but there is also alarming and belief in any of this could cause mistakes to be made that cost no deal. Rather than take that risk, read below to learn some of the most common tax myths and the truth behind the matter.
Deduct Start-up Costs
Many small business owners look forward to deducting start-up costs from their taxes, but hold tightly because this may not always be something that you can immediately do.
Advertising, training, and costs of supplies may be deductible as they’re known as capital expenditures. You may deduct $5000 in organizational costs and another $5000 in business startup costs.
You Won’t be Audited if you Overpay
Some people think if they overpay they won’t be audited by the IRS but this is yet another myth that you shouldn’t believe. Do not overpay the IRS purposely because this may lead to an audit. The IRS isn’t concerned with overpaying for underpaying, but more with the accuracy of the filing.
Incorporate the Business for More Deductions
Sadly, it’s only a myth that you receive more deductions if you incorporate the business. You will not receive any additional deductions if you incorporate the business than you would as any other type of business would.
The Final Word
It’s a good idea to consult with an attorney to help with your tax related small business issues. They have the accuracy, experience, and expertise to ensure that your small business taxes are appropriately handled, giving you one less thing to worry about. Search for a reliable law firm near me and make sure to get the help that you need to stay out of trouble with Uncle Sam.