There are several types of business Entities and it seems a different tax form is used for each type. Corporations, S-Corporations, Limited Liability Companies, Partnerships, and Disregarded Entities MUST each properly file. One mistake can have a ripple effect on the whole business tax return (and any member getting a K-1) with penalties and interest imposed. We can assist you in your business tax preparation to avoid these pitfalls. We also supply you with any Journal Entries you need to make to your business books to keep them up to date and substantiate differences in the reporting.
Small Business Taxes
Small Business is especially susceptible to more scrutiny from the IRS and the State of New Mexico. If an owner does not know the regulations they might be ruled a “Hobby” by the IRS and any losses would be disallowed or worse. With the new Tax Cut and Jobs Act many opportunities for retirement plans and ways of saving taxes are waiting for Small Business Owners.
The loss of dependent deductions have been offset with a much higher standard deduction (almost doubled over 2017) as well as many changes to the itemized deductions like Medical Expenses, Contributions, limited state and municipal governmental tax deductions, revised home mortgage interest rules and the repeal of employee expenses and work-related expenses (known as 2% limited deductions) will keep the taxpayers guessing. We have been studying these changes all year and can help you navigate through 2018 tax return.