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Tax Tips for Small Business Owners

If you own a small business you can’t be expected to be a tax expert as well. However, here is some tax advice that may be helpful to you. Some of it may apply to your particular business and some may not.

Most small business owners know they can write off the cost of capital improvements by depreciating the asset over a few years. However, there is another way to write off the costs of those capital expenses. For a small business owner who purchased new equipment and property for his or her business. You are allowed to make deductions on the cost of those purchases in your 2011 tax returns. You will need to use Form 4562. You can also go to the IRS website page on “Instructions to Form 4562 Publication 946” for more details.

Here’s another resource for you on the IRS website, it’s known as the small business tax center (www.irs.gov\smallbiz.com) to find information on what the IRS offers to small business owners. For example, there is a virtual business tax workshop, common forms and instructions and help on getting an employer identification number.