Claiming a deduction for a vehicle used in your business is simpler than you might think. And the value to your bottom line is too large to ignore. You can figure the deduction a couple of ways and, with only a couple of restrictions, you get to choose which way to do it.

 

The first way is to calculate the actual costs of using your vehicle. You just keep a record of all your vehicle expenses through the year and add them up. If your use of the vehicle is 100% business related, all the expenses can be included. If you use the vehicle only part time for your business, you may use only that fraction of the expenses in your deduction.

 

The second way to calculate your deduction is to use the business standard mileage rate. For the 2012 tax year the rate is 55.5 cents per mile driven. Generally speaking, you can use this method unless you’ve claimed a Section 179 deduction for that vehicle, or have depreciated it under the Modified Accelerated Cost Recovery System. Most people don’t fit into those categories, so if you don’t know what they are, you can probably use the method.

 

Just like the actual cost method, you can claim the rate for every mile driven for business use. If you take just a moment and think of all the business miles you drive over the course of the year, you’ll see that they add up quickly at more than 55 cents per mile.

 

Remember, you can choose one method or the other. If you choose the standard rate method, you can’t also deduct for oil changes and new tires. It’s a good idea to keep records for both, so you’ll know which is best for you.

When you are trying to keep receipts for tax purposes, it is wise to have a system in place that will allow you to have everything organized when it comes time to put together your taxes. Most people keep their receipts, but they don't organize them.

 

The first step to having a better system for handling your receipts is to organize them by category. Organizing by categories such as food, fuel, office, and other expenses will help you when it is time to present those receipts to an accountant who is attempting to prepare your taxes.

 

The next best thing to do is keep your receipts in envelopes by year. This means that you will be able to easily find them for future reference. If you are unsure which year receipts came from, you can accidentally file them under the wrong year's tax reports. This could cause problems when your accountant is attempting to put together your returns.

 

Finally, your system might need to include some sort of color-coding that allows you to easily recognize what types of purchases each receipt represents. Not only will you have a much easier time working out your taxes, but your office and business will feel more organized.

 

For both individuals and businesses, having their tax return handled by a professional accounting firm provides peace of mind. Experienced tax accountants know exactly what documents are needed by the Internal Revenue Service. Quite often, people attempting to do it all themselves will forget about expenses that could be claimed as a deduction, thus end up paying more in taxes than they should have.

 

Particularly for business owners, keeping track of every expense is important. A tax professional needs to have a record of every business expense, so they can determine what can be claimed as a legitimate deduction. Some business expenses can be claimed for a single year, while others can be amortized over several years. Only a professional tax accounting service can keep up with the latest changes in tax laws, and how they relate to each individual or business tax situation.

Inside every company is a resource of information that pertains to past, present, and future business costs. Each company that produces a service or a product is required to maintain legible accounts of all transactions to be tallied by the local, state, and federal governments at the end of each business cycle. Managing the financial records of business is the job of a qualified bookkeeper. Those who can designate an order into which business was undertaken are integral to keeping revenues in order so that business costs can be managed and taxes that are due can be paid.

 

The business of bookkeeping is important to business as government levies more responsibility onto its business owners. Qualified accountants and bookkeepers should be able to handle the task as well as the company should be able to find qualified help at a cost that fits the budget of the business. Ebooking eliminates the cost and responsibility of adding bookkeeping employees to the payroll and reduces the burden of more government control through employment. Utilize Dowd Whittaker's Ebooking to connect to your company's financial records in a way your bookkeeper never could give you.

 

Ebooking from Dowd Whittaker gives you back the ability to manage a company's financial paperwork for government while allowing businesses to run without waiting for financials to be reported correctly or on time. Reliable bookkeeping will push a company forward even as progress shrinks the overall size of its workforce but not its revenues. Progress will always play a part in the success of business but as companies shrink, the need remains for a qualified bookkeeper that may or may not not fit the size or the business model of the company. Consider a future where the service being provided by the local work-force is unable to handle the needs of the business owner.

Running a small business is stressful enough as it is, you don't want the weight of preparing a small business tax plan on your head and shoulders. There are so many laws involved with filing a business tax report, let alone sifting through all your receipts, possible deductions and expenses your head is sure to spin just contemplating the task. Furthermore, you probably don't have the time to sit down and go through all the paperwork, and any attempt just results in a rushed effort or a loss of revenue, due to your time spent away from the business and focused on taxes. This is why hiring a professional tax accountant is such an important, viable option.

 

Dowd, Whittaker and Associates gives you all the services you need to file a complete small business tax return. This includes going through every small receipt, business account and bit of information to make sure you have the most accurate return available. On top of this, the firm is able to determine what write offs you are able to take on your taxes, which removes all the guessing work and reduces any audit chances you and your company has. Furthermore, Dowd, Whittaker and Associates is then able to proceed and find every available deduction you can take, resulting in a reduced tax burden placed on your business.

 

Filing a tax return for a small business is completely different than doing so for yourself or your family. There is far more paperwork involved a considerable amount of more laws and additional information required to compete the filing. Chances are, you don't have the time or resources to perform the extensive task yourself, and any professional help is sure to provide you with the very best return. This is why going with Dowd, Whittaker and Associates is such a valuable option.

 

For accuracy and peace of mind, it is best to let a professional tax accountant prepare the yearly income tax return. An accountant with experience in doing personal and business income tax returns will know exactly what forms and documents are needed to do the tax return accurately for maximum deductions allowed.

 

Many tax accountants will now file an income tax return electronically, which should get it approved faster. Some tax accountants will also keep whatever documents their clients submitted in storage at their office, in case they are needed for future reference.

 

Having a local tax accountant do an income tax return provides the personalized service that is missing when someone tries to do their tax return on their own using an online program. Whenever someone has a question about their income tax return, their local tax accountant is just a phone call away. Knowing that important tax documents are being safely kept in storage provides peace of mind.

 

The Internal Revenue Service appears to be increasing their efforts to make sure that small businesses are in compliance with this law. In fact, two new lines have been added to tax return Schedule C to make sure that you have complied with the law. These questions will assure that you have filed the correct paperwork or you can be found in violation of the law.

 

We are here to help you comply with the law. We will gladly help you file all the correct paperwork. We can also help you determine who you need to send this paperwork too. Vsit us at www.dowdwhittaker.com for more information as to how we can help you!

It is that time of year again where you need to make end of the year tax preparations. Filing an accurate return is critical if you do not want to receive any letters from the IRS. There are a few tips in this article to save you from being noticed by the IRS.

 

First of all, in order to give a precisely prepared tax return, as a taxpayer you need to record all of your supporting incomes as well as any expenses that you have had during the year. This ensures that it is accurate, so that you don't have to worry about anything with the IRS.

 

Working ahead of time will also help you to keep from making any silly rush-mistakes like forgetting to include a 1099 or K-1 form. Forgetting any a form in your tax preparations will probably lead you to getting a letter from the IRS telling you that you left out information. Leaving out information from the IRS puts you on their radar, and it is never a good thing to be on their radar.

 

Next, you will want to make a detailed list of all your stocks. Leaving anything off is not good because if the IRS finds out they could write you a letter telling you that you owe them more money due to having an increased income. Also another important thing that you can do is make last minute deductions on your taxes by giving to a charity. Make sure that you get letters of proof from the charity saying that you donated a certain amount of money.

 

End of the year tax preparations can be daunting, but if you continue to work on them diligently you will be fine. The important thing is that you take the time to do them properly, and you will be okay with the IRS.

It is never to early to begin organizing your taxes for your upcoming tax returns. Plus, with the end of the year fast approaching, there are a few tax deductions and donations you are still able to make. This is going to help reduce the amount of taxes you need to pay next year. With this in mind, your head might start to swirl, as you are not able to complete all the tasks on your own. However, with the help of Dowd Whittaker and Associates, you are able to perform and complete just about any task necessary. They are here to help you with your taxes, and the sooner you file you taxes, the quicker you are going to receive your tax return, which is nice, if you expect to receive a solid return this year.

 

When using Dowd Whittaker and Associates, you need to bring in all of your current expense documents and receipts. With the receipts, the tax return specialists are able to determine just what you are able to write off and deduct from your yearly taxes. You do need the receipts though, because if the IRS calls calling, you need to be able to prove that the expenses are actually legitimate, otherwise you are not able to write off an imaginary number.

 

Because you are getting a head start on your taxes, you don't need to sweat it while the tax return deadline approaches, as you already have most, if not all of your paperwork completed. Plus, if you file before most other individuals, you are aging to receive your return quicker, than if you file your taxes during the final week or so. This is because the IRS doesn't have as many tax returns to go through, and they are able to mail out your check faster.

It is never too early to begin on your taxes, and as long as you have all the necessary paperwork, the sooner you start on your taxes the better. This allows you to get it all out of the way when filing for taxes, and if you are expecting a return, you receive the return far quicker when you submit your taxes earlier. Of course, even if you have all the necessary paperwork you may find it difficult to have enough time to prepare the taxes, and there are probably other activities you want to consider performing, instead of looking through tax documents. This is where hiring a professional tax accounting is important. With Dowd, Whittaker and Associates, you are able to hire accountants with experience and individuals you are able to trust.

 

Hiring an experienced tax accounting firm, such as those from Dowd, Whittaker and Associates, ensures you receive the most possible money on your return, as they are capable of locating your all available tax deductions and write offs for you. This is extremely helpful, especially when running your own business or when you are self employed, as you probably have a large stack of receipts you don't want to thumb threw.

 

Dowd, Whittaker and Associates help out with tax issues for just about anyone, from individuals to businesses and large corporations. With tax planning the company is able to instruct you on the best methods to track your spending, in order to make sure you are able to take down the appropriate amount of deductions. The better records you keep the more money you are able to deduct, and this is all important information Dowd, Whittaker and Associates needs from you. With their help, you are able to receive peace of mind and know your tax information is in good hands.