Are you making these small business tax mistakes?
Dec 07, 2021
You’re smart, right? You’ve managed to do quite well with your small business or freelance career. Could you be making some basic tax filing mistakes that are costing you money? Are you sure?
Honestly, it’s not your fault. Tax laws are constantly changing and it’s challenging for anyone. If taxes aren’t your thing, shouldn’t you consider some advice? Here are two things we’ve seen at Shoebox Tax Prep…
THE $35K PHONE CALL
Chris was doing well. His consulting business was really taking off. He had some unforeseen home issues that his family needed done. Instead of financing the work, he took money out of his 401K. It’s his money, right?
Because he didn’t call a Shoebox Tax Prep advisor BEFORE he made this deduction, it cost him $35K as a huge tax liability. He had other options but, because he didn’t pick up the phone and ask, he can’t get that money back.
$2700 OUT THE WINDOW
Susan’s flower shop was in a growth mode. Hard work and great customer service were building her client base daily. Sometimes she’d take care of that vendor’s bill by just paying in cash or putting it on her personal credit card. That just makes things simpler, right?
WRONG! Once you’ve paid business expenses with personal funds - like using personal Venmo or PayPal - you might have just lost some serious tax benefits. You ALWAYS want to use your business banking accounts or credit cards to simplify your tax filing and insure you get every dollar you deserve.
This space is for sharing tax preparation best practices and sometimes that means looking at our mistakes. Think of Shoebox Tax Prep as a ‘Doctor for your Wallet’. If you’re in pain, you ask your doc for advice to get better. If you want tax season to be easy peasy, ask the experts at Shoebox Tax Prep for smart ideas for your money.
Shoebox Tax Prep with offices in Sandy Springs and Savannah Georgia will make the most out the tax gold in your shoebox of receipts so you can happily focus on your business.