It’s August, so the last thing on your mind is probably taxes. But, there are things you can be doing now and throughout the year that will help you get the most out of available deductions. If your business involves real estate in Arizona, then read on for information on deductions you may not know about, and for helpful tips that can help you take full advantage of current real estate IRS tax laws.
Common Tax deductions for Arizona real estate professionals
- Vehicle expenses, including mileage, insurance, interest on loans, parking expenses, tolls, license plate fees and depreciation.
- Home office expenses (if you qualify – check with your CPA).
- Advertising and marketing expenses – basically, anything you pay for advertising materials.
- Bookkeeping, accounting, tax preparation and legal expenses.
- Business meals and entertainment (deduction is limited to 50%)
- Real estate franchise fees
- Office supplies
- Office rent, utilities and cleaning
- Business-related travel expenses
- MLS dues and dues paid to realtor associations and chamber of commerce memberships
- Real estate license renewal fees
- Continuing education expenses
- Computers and related software and equipment
- E&O, health, liability and equipment insurance
- Wages paid to employees
- Cell phone expenses
- Business gifts (deduction is limited)
Tips to help make tax time “less taxing”
1. Get organized. Use a separate bank account and credit/check card for your business-related expenses, and organize your receipts. Remember to save receipts even for the smallest purchases, as they can add up to big deductions. Keep track of mileage as you go, rather than trying to recreate it later.
2. Understand limitations. Most business expenses can be deducted if they are “ordinary and necessary.” A CPA can help you determine whether an expense satisfies both of these requirements.
3. Get help from professionals. We get it; you’re entrepreneurial. That’s great! However, unless your business is a tax business, it will be incredibly difficult, if not impossible, to stay on top of the tax rules and regulations on your own.
We would love to help out. Please complete the form to set up an appointment with our real estate tax specialist at Sean Core CPA PLLC conveniently located on Chandler/Mesa border today.
Summer time means tax time…Successful Businesses invest time to develop prudent tax planning strategies in the slow season
Yes, summer in Arizona brings a sudden decrease in revenues for many retail businesses and restaurants – which can be tremendously painful to our bank accounts! But if you have been in business for a length of time, you already know how the “AZ Summer Slowness” can actually work to our advantage long-term. Since summer is often slow, it means that we business owners can dedicate much needed time to focus on US, and our own businesses! Besides recharging our batteries, summer gives us time to strategize, re-organize, plan and prepare for the upcoming business season.
Summer is an excellent time to talk business tax strategies, revenue growth and tax planning with us….. before it gets busy again – when you only enough time to keep your head above water.
Meet an Arizona small business tax accountant who works with many types of Phoenix area businesses
Sean Core CPA PLLC works extensively with small businesses in many industries, and retail businesses are one of our specialties. We understand that even the most successful small businesses owners don’t always have the time or expertise to master the fine points of inventory management, and we’re here to help. We provide a full range of business tax and accounting services, new business start-up planning, business entity consultation, financial planning, payroll and tax return preparation.
Many new retailers don’t fully understand how the lifeblood of their business—buying and selling inventory—is treated by the IRS for income tax purposes. If you pay an employee, or buy an advertisement, or purchase a qualifying piece of equipment for your store, that’s usually a deductible business expense. But when you receive a shipment of inventory and write a check to your vendor, you have not incurred a deductible expense. Instead, you’ve “traded” one business asset (cash) for another asset (inventory). You don’t deduct the cost of your inventory until you sell it, when the price you paid becomes part of your Cost of Goods Sold calculation.
As the owner of a retail store or other product-based business, you probably devote most of your time and energy to marketing your business, engaging with customers, and making sure you have the right product mix and stock level to ensure a smooth—and profitable—flow of inventory. This isn’t always easy, especially if your retail business deals with seasonal fluctuations of product supply and customer demand. How do you manage your inventory so you always have just the right product mix and stock level, sourced from the best vendors at the most favorable terms possible?
Our local small business tax accountant team excel at giving retail entrepreneurs the accounting and tax-planning tools you need to be successful. Contact us today to learn how we can help you achieve your business goals and dreams. We know… it is hard to believe it in this Arizona heat, but fall “busy-time” is right around the corner!