A Taxing Time

Business

If you’re a small business, independent contractor, or even an individual, preparing taxes might rank right up there with death, divorce…or trying on bathing suits.

According to Helen Sandonato, Manager of Liberty Tax Service, before you select a tax preparer, just follow the good old scout motto: Be Prepared.

Have all of your income documents and expenses tallied before you go in to see the tax preparer (no shoeboxes of receipts, please). Liberty gives a free estimate of how much they can save you and how much it’ll cost to prepare.

Why pay a tax preparer when you can do it for free or a small fee online (like on Turbo Tax.com)?

“We’ve had people bring in tax returns (done online) and they’ve missed things,” Sandonato said.

Expense Checklist for Businesses

Advertising
Contract Labor
Commissions/fees
Prior Depreciation
Items Purchased (this year to use in the business that has a useful life of over a year)
Employee benefits
Interest on business loans
Legal and professional services
Cost of last year’s business tax return
Office expenses
Rent or lease (equipment, vehicles, property)
Repairs and maintenance
Supplies
Taxes and licenses
Meals (for overnight stays)
Entertainment expenses (necessary, like client meals)
Utilities (telephone deductions are for second lines only)
Vehicle Expense (driving to and from work doesn’t count) Standard mileage or actual expenses are the two ways to calculate vehicle expenses. Mileage is normally better on deductions (50 cents per mile) and is simple to track in a mileage log.
Other Expenses
Client Gifts (limited to $25/recipient per year).
Home Office (if your home office occupies one out of five rooms, use 20% of the total utilities cost as a write off)

Client Peggy Dhermy (right) had some ‘good news!’ thanks to Helen Sandonto’s attention to details.

Schedule A – separate from Business Expenses, have tallied:
Medical expenses (insurance premiums, prescriptions, medical miles (14.5 cents), costs not reimbursed by insurance, glasses, contacts, braces. Only 7.5% over your adjusted gross income can be deducted.

Other Schedule A deductions include: Mortgage insurance, property taxes, and mortgage interest. Gifts to charitable organizations (cash, non-cash), un-reimbursed employee expenses (work shoes or work clothes, union dues, professional subscriptions).

Liberty offers a written guarantee. If you’re not satisfied for any reason, the office will refund your preparation fees. The company also guarantees accuracy, a free consultation, IRS audit assistance, help with IRS or state correspondence, and Liberty is in the office year-round.

Call 706-635-1199 for more information.

Back to Top