If you have ever had to attend court in order to prove your innocence, you know how much your appearance and attitude can impact the proceedings. Unfortunately, all too many people misinterpret how they should dress and what they should do in court, which is why I decided to make this blog. This website is all about creating a great impression in court and understanding how to present yourself to the judge and jury. After all, you might be trying to defend your innocence to avoid potential jail time. Check out this blog for great tips that could help you to protect your freedom.
If you are part of an LLP and are doing taxes for the first time, then it is important to get everything right so that you do not have problems with the IRS. Here are 2 important things to understand so that you can pay taxes accurately.
Knowing What Each Partner Owes
First, you need to know what each business partner owes at the end of the calendar year. The easiest way to figure this is out is by adding up all of the profit for the year, and then you need to subtract every expense that the business has incurred.
This does not include your personal expenses yet, so make sure that you only include things that were charged to the company, such as shipping costs, loans taken out, payment for retail goods to sell online or in a store, business trips, and any purchases made by the company card.
After you do this, you will take the total income leftover, and then you will divide the total income left by the number of partners. Even if you leave some of the money in the business at the end of the year, you still have to account for it on your taxes.
Do not just pay taxes on what you pay each partner if some money has to stay in the business account for upcoming expenses because this will be inaccurate.
Deducting Personal Business Expenses
Next, each business partner needs to have a record of all of the miles that each person has driven. When you go to do taxes, your accountant will ask if you have any business miles, and you will get a tax deduction or write-off for these miles.
Make sure that you have dates and places recorded along with the miles so that you have an accurate record to prove your miles in case you get audited later on.
Also, keep a list of business meals you paid for during the year, any computers you bought to use for work, and think about business trips that you have personally paid for and taken.
In addition, you can write off part of your mortgage payment each month, your phone bill, your utilities, your Internet, and anything that you use to do business regularly. This will help to lower the amount of money that you owe by bringing your taxable income down.
You can easily cut down a few hundred or thousand dollars from your taxes, and this will save you money in a big way.
By understanding these 2 important factors, you can accurately pay your taxes and give an honest account of what each business partner made during the year. Contact a company like Bauer & Associates LTD for more information.
Share28 January 2015