Understanding what options they have when it comes to tax matters can be very important for small business owners. Having an incomplete picture of such options could cause an owner to inadvertently act in a way not consistent with their financial best interests.
One area for which this is the case is deductions and credits. Not being aware of what options for deductions or credits they could qualify for could cause a business owner to miss out on potentially helpful tax benefits.
There are a range of credits and deductions out there that small business owners could qualify for, including some that aren’t the most well-known. Some of the often lesser-known ones include those related to:
- Home office costs.
- Expenses for accessibility-related barrier removal.
- The expenses of starting up an employee pension plan.
- Business-related motor vehicle use costs.
So, what tax benefits, both well-known and lesser-known, are available to small businesses can be an important thing for small business owners to stay properly informed on.
Another area in which having a full understanding of one’s options can be critical for a small business owner is when they end up in disputes with the IRS, such as disputes related to deductions or credits. The decisions an owner makes when responding to such disputes can have very big impacts for their future, including their financial future. So, how complete of information a person has when making such decisions can matter a lot.
A business owner’s individual circumstances can have big impacts on what particular options are available to them when dealing with tax disputes. Tax lawyers can advise individuals for whom small-business-related tax disputes have come up on what the specifics of their situation mean for their options.
Source: CBS Los Angeles, “Hidden Money: 4 Lesser Known Tax Credits For Small Businesses,” Laurie Jo Miller Farr, Sept. 1, 2017