Tax day: that dreaded part of the year is rapidly approaching. With March 15 less than a month away, the best thing that entrepreneurs can do is think hard about finding deductions that might not have seemed obvious a year ago. Luckily Franchise Direct is here to help you.
A number of periodicals have just published their advice for this gruelling season. Business Week has suggested its Hidden Tax Tips For Entrepreneurs. Among a slideshow of 25 tips are two that many franchisees, including those who operate home-based franchises, commonly overlook: vehicle and home-office deductions.
“New investments of up to $250,000 in equipment, vehicles, or software can be written off immediately, rather than depreciated over future years, under the Section 179 deduction. If you have a home office that you use exclusively as your primary place of business, you can deduct costs for the business use of your home.”
Enterpreneur magazine offered a small business focus for tax savings - they've keyed in on changes to the tax code that were brought in from last year. For instance, tax deferment is something that all small business people should explore
“Income deferred under a nonqualified deferred compensation plan is usually taxed the year the deferral is made. But the IRS changed the complex rules on this issue for 2008, so if you deferred income, be sure to check the fine print to see if you owe the tax now or can wait to pay it.”
Take a few minutes to read through these suggestions to find if they apply to your franchise. There's a good chance franchisees might able to save thousands.
Times are tough enough - there's no point in giving the government money that is rightfully yours.