When an asset or assets are sold, they must be classified as either a capital asset, depreciable property, real property used by the business, or item for sale to customers, such as inventory. It’s typical for a business to have many assets. Let’s go through the top five documents that you and your accountant will need to complete your tax return.Ī capital asset is an asset that benefits your business for more than one year. Online resources will help define terms like earned income, premium tax credits, refundable credit, filing status, earned income tax credit, and show you how an IRA, health insurance, and child tax credit can affect your return.

If you would rather do your own taxes and not take advantage of a CPA, you could take tax preparation classes or research online sources to help you make sense of the tax forms needed to file your business taxes accurately. Every small business is different, so the information needed will differ, but will generally include: gross income, client invoices, records of goods sold, salaries, sales records, last year’s tax return (if applicable), receipts for office supplies, etc. Keep in mind that it’s a lot less expensive if you plan ahead and compile as much information as possible prior to scheduling an appointment with your accountant. In only a few hours, they can help you sort through and summarize all of the information needed to pay your taxes, freeing you up to focus on the day-to-day operation of your business. If you don’t have a solid understanding of small business finances and taxes, or what small business tax deductions are possible, it may be in your best interest to employ a tax professional.

Small business tax return company mn