Small and home-based businesses have special tax concernsMarch 19, 2014 @ 1:55 am
UNDATED (AP) -- Americans are starting up small and home-based businesses by the millions, but many may be ill prepared when tax time rolls around.
Meisa (MEE'-sah) Bonelli, managing partner of Millennial Tax, a service for small and home-based businesses, says "the IRS is auditing them in the millions." She says many new entrepreneurs don't realize what they're getting into and fail to register their business properly.
Also, they get into tax trouble because they don't have the necessary documentation for business expenses. "Not only do you have to keep your bank receipts and your credit card statements," says Bonelli, "but you have to also keep the actual receipt of the charge."
Bonelli says that leads to problems with the IRS as well as missed opportunities for tax deductions or exemptions that could save them money.
She says small and home-based business owners need knowledge and advisory support that "cannot come from do-it-yourself software." Her advice is to use a specialist, because it could save a lot of money and avoid a lot of headaches. And the expense is tax deductible.
034-w-38-(David Melendy, AP correspondent, with Meisa Bonelli, managing partner, Millennial Tax service for small and home-based businesses)--Small and home-based businesses have special tax concerns. AP correspondent David Melendy reports. (19 Mar 2014)
This Is Your Commute
Jackknifed semi truck on I-5 in Seattle kicks off an ugly morning commute
Thieves have stolen all the decorations for Seattle's popular Halloween Alley
A Boeing CEO says Everett's new 777X wing facility is a sign of commitment
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.