Taxes are complicated in general, but for small business owners, they can be even more complex. Understanding the terminology and regulations is a daunting task but it’s important to have at least a basic understanding of how small business accounting works. The tax help team at ZP Tax, located in Silver Spring, MD, discusses some frequently asked questions about small business taxes.

4 FAQs About Small Business Tax Help

1. Should I Manage Bookkeeping & Tax Filing for My Small Business?

If you choose to keep your own books while your small business is growing, it’s a good idea to use a computer program to track your expenses. Run your bookkeeping system by a small business tax professional to make sure you’re being accurate and avoiding common mistakes. When your business is profitable, you may want to consider hiring a bookkeeping services team to manage your daily accounting services and a CPA for tax help.

2. Can I Write Off Business-Related Vehicle Expenses?

You can determine the amount of your vehicle deduction by using the actual expense method or the standard mileage method. Most people use the standard mileage calculation because it requires less recordkeeping. Regardless of the method you choose, it’s important to keep track of the miles you drive for business purposes to determine your deduction. Visit the IRS website to learn more about small business vehicle deductions.

3. Is There a Deduction for Business-Related Entertainment?

You can deduct half of the expenses for entertaining customers or clients for business purposes. This can include taking customers to a sports game, concert, or restaurant. It’s important to keep a guest list and record the business relationship of each person who attended in case you are audited.

4. If I Work From Home Part-Time, Can I Take the Home Office Deduction?

If you run your small business out of your home, you may qualify for the home office deduction. You can subtract a portion of your mortgage or rent, utilities, and insurance costs, but there are strict requirements that you must meet. The IRS website explains the requirements you must meet to qualify for the home office deduction.

The bookkeeping services team at ZP Tax provides expert tax help services for individuals and small business owners, offering customized assistance to accommodate each client. Give them a call at (301) 587-4829. You can also visit them online to learn more about their business tax preparation services.