A common practice of any business irrespective of its size is the capitalization of costs of an asset that it buys. To put it in simpler terms, capitalization means the cost of an asset that is written off in the balance sheet over a number of years. Also be aware that capitalization rule is applicable on all assets regardless of … Continue reading
Posts Categorized: Tax Center
How Small Businesses Should Prepare For Estimated Tax Payments
Small business owners have to pay estimated tax quarterly and should not wait till April 15 or when other type of tax payers file their respective returns. These quarterly payments are for the amount the small businesses estimate that they owe the government. In case estimated tax payments are not paid timely, the small business might have to pay heavy … Continue reading
Tax Saving Tips for Small Businesses
Many small businesses are so engrossed in dealing with the daily functions of their businesses that they don’t ever give a thought to income tax until the filing deadline begins to loom. It often results in last minute stress filled attempts to get the receipts and other relevant documents in order. This could be avoided if you include a year … Continue reading
Self-Employment Tax Tips You Should Know
Being your own boss comes with a cost. You are responsible for record keeping and putting a good tax strategy in place. The IRS (Internal Revenue System) audits freelancers and independent contractors routinely because they are suspicious of self-employed people. The IRS keeps an eye on those self-employed individuals whose (a) business is incurring heavy losses year after year (b) … Continue reading
