Seeking information on tax breaks for our business
Me and my wife are just starting up a Christian T-shirt business, my question is, what things should we be doing now, at this point, to prepare for later when we file our taxes?
I'm saving reciepts, but as far as that, I don't know what else more I can do. We're also currently running the business out of our home, and I'm pretty sure there's a tax break in there somewhere. Thank-you so much for your help, advice is as good as gold.
Thanks for your question. We are excited for your new start up business.
We will be happy to share some things to consider. Saving receipts is great, but you will want to start accounting for your income, expenses, assets, and liabilities.
Being able to give an account of your business is a biblical principle. See Matthew 25.
We recommend a simple software like Quicken or Quickbooks. You can always hire someone to do this for you, but we think it's important for you to learn some basic accounting practices.
When you decide how you will handle your accounting we'll walk you through some basic things to keep in mind when running a business.
There are huge tax breaks you're entitled to, especially if your home is being used for your business. But until you are set up with an accounting system you won't be able to take advantage of any tax savings.
For example, a home office deduction is based on actual homeowner expenses. So you will also need to do some type of bookkeeping for your personal finances as well. This is a requirement of the IRS that they are adamant about.
Let us know when and how you decide to do your bookkeeping and we can help you with the next step.
All Our Best,
Scott & Laurie Prindle