Hidden Small Business Tax Deductions and Tax Extension Deadlines for 2018

Small Business Extended Tax Return Due Dates for 2018

While fall isn’t considered “tax season,” there are a handful of crucial dates for businesses to know as Q3 wraps up and the fourth quarter begins. The remaining deadlines for 2018 are for those who have requested an extension to filing their tax return.

September 17, 2018:

  • Deadline to make estimated tax payments for the 3rd quarter of 2018
  • Final deadline for Partnerships and S-Corporations to file corporate tax returns for 2017 (with extension)

October 1, 2018:

  • Deadline for self-employed persons or small employers to establish a SIMPLE-IRA.

October 15, 2018:

  • Final deadline for C-Corporations and Individuals to file corporate tax returns for 2017 (with extension).
  • Last day the IRS will accept an electronically filed tax return. You will have to file by paper after this date.

Home Office and Other Small Business Tax Deductions You Didn’t Know About

Starting, owning and running a small business can be incredibly difficult at times. Ease some of the load and take advantage of these hidden tax deductions that small business owners can claim.

Home Office Deduction

In order to properly write off your home office for your small business tax deductions, it’s important to understand how exactly this rule works. The IRS states that the space is exclusively used for your business and serves as the principal place of business. To calculate the deduction, the IRS offers a simplified option: deduct $5 per square foot of home used for business, up to a maximum 300 square feet. The regular option is to calculate the percentage of space in your home used for business. Read more about the different options for calculating your home office deduction.

Coworking Spaces

Perhaps you don\'t operate your business out of a home office, but instead from a collaborative workspace. Save a purchase receipt for any fees associated with your coworking space, and you can write off these expenses.

Travel Expenses and Mileage

Certain conditions apply when writing off travel-related expenses. In order for a trip to quality as business travel, it needs to be ordinary, necessary and away from your tax home. You also need to be traveling for longer than a normal day’s work. A few business travel expenses approved by the IRS are meals and lodging, tips, shipping of baggage, and transportation fees such as bus or taxi fares, car rentals, airplane tickets, and mileage of your personal car.

Insurance Premiums

If you are self-employed and pay for your own health insurance premium, these costs are deductible as long as they don’t exceed your business’ total profit. If your health coverage is through a secondary employer, though, you can’t write off those premiums.

Employee Benefits

You can deduct the cost of employee benefit programs, including wellness assistance programs, education assistance and retirement plan accounts. If you’re self-employed with no additional employees, you may be eligible for personal deductions if you make contributions to your own qualified retirement plan.

Education, Certifications and Self-Improvement

Educational costs are fully deductible if they add value to your business or increase your work ethic and expertise. This includes books, workshops, conferences, and traveling to and from classes. Any educational cost that is unrelated to your business or industry don’t qualify.

Start-Up Costs

If this is your first year of being a small business owner, you may be able to write-off costs related to creating, preparing and organizing your business. This can include providing surveying and field work, employee training programs, visiting potential office locations, or advertising fees.

Hire A Local Accountant for Small Business Tax Filing Help!

With so many possible deductions and the fine print behind them, it’s easy to get confused about whether or not you qualify for them. If you’re self-employed or a small business owner in Carmel, Westfield or the greater Indianapolis area, consult with Watson CPA today to verify the business tax write-offs you’re qualified to make.

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