Top CPA and business accountant Thomas McAlister, founder of Thomas J. McAlister P.C in Denver, CO, outlines the misconceptions surrounding small business tax. For more information please visit http://thomasjmcalister.com
— In a recent interview top CPA Thomas McAlister, founder of Thomas J. McAlister P.C in Denver, CO warned against misconceptions surrounding small business tax.
For more information please visit http://thomasjmcalister.com
When asked to comment, McAlister said, “It’s no secret that small business taxes are notoriously complicated. Even though this may be the case, unfortunately, many small business owners attempt to go at it alone when tax season rolls around – even when they might not have all the correct information.”
Here are a couple of misconceptions that small business owners should be aware of, according to McAlister.
One of the most widespread tax myths is that small business owners aren’t required to pay quarterly taxes.
When asked to elaborate, McAlister said, “Unless you’re a W-2 employee or a freelancer whose taxes are being withheld, then you’ll have to pay quarterly income and self-employment taxes both at the state and federal levels.”
He continued by saying, “A good rule of thumb is to set aside 30% to be able to pay your quarterly taxes, which are due by January 15, April 15, June 15 and September 15. An experienced accountant will be able to guide you further through completing these quarterly payments for your specific situation.”
Another common tax misconception among small business owners is that any and all business-related expenses can be deducted.
“While it’s certainly true that a number of business expenses are deductible, you might be risking an audit if you attempt to take too many deductions. When it comes to claiming deductions, the best thing to do is to consult with a tax professional to ensure that you claim only what you are entitled to,” he said.
McAlister further pointed to the fact that some standard business deductions include meals and entertainment, advertising, communication, insurance, and a home office.
Another widespread misconception is that CPAs and tax professionals simply fill out tax forms.
“Tax professionals are trained and licensed to understand the tax landscape and how to navigate it. This includes knowledge of company structuring and deductions, which could help your business save money in the long run. Furthermore, anyone who is licensed to prepare taxes must keep current with the latest changes in the tax code,” he added.
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Contact Info:
Name: Thomas Mcalister
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Organization: Thomas J Mcalister P.C.
Address: 4704 N Harlan St #675, Denver, CO 80212
Phone: 303-279-1450
Website: http://thomasjmcalister.com
Source: MM-REB
Release ID: 89048380
