Take Our Small Biz Quiz to Keep On the Profitable Side
Presenting our first annual Small Biz Quiz! Check to see if your small business is following the rules and taking advantage of every opportunity to save.
True or False: You can claim the mileage deduction for every trip connected to work.
False. If you’re self-employed, the IRS lets you expense trips from the office to a secondary work site, or errands such as going to the bank or post office. But you can’t deduct the trip from your home to your office. The feds consider where you live a personal choice, so your commute is a personal expense. An exception comes in if you have a home office, though. And the home office deduction [https://andrewstaxaccounting.com/home-office-deduction/] is a great one, too!
True or False: I don’t need a separate bank account for my business.
False. There are lots of reasons to have a separate business bank account. For one thing, it makes it easier to track expenses. More importantly, if you mix business and personal funds, the IRS can go after your personal money. And that’s even if you’ve set up your business as an LLC.
True or False: If I file for an extension, I don’t have to pay my taxes until I file.
False. An extension lets you file up to six months after the original deadline. But you still need to pay on time – the IRS wants its money by April 15. If you don’t pay by then, you’re going to be hit with penalties and interest.
True or False: I should wait to file if I can’t afford to pay by the deadline.
False again! The failure-to-file penalty is a big one. So you’ll definitely save yourself money by filing your tax return on time. And don’t forget you can probably arrange a payment plan with the IRS, that will let you pay your tax bill over time. You’ll still pay interest, but skip the penalties!
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Here’s a quiz to test your chances for small business success.
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