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This was originally sent to me in early 2005 by a Rep. I had it posted on the original MBA website back in early 2005. Some how it got left out when the new site was created. I ran across it on the hard drive of my notebook and though it still may be of use to some of you.
Posted by Diane on January 26, 2004 at 12:05:48:
Things To Do Now In Order To For A Stress-Free Tax Time
1. Record the year-end mileage on your odometer today. You'll need to supply this to your accountant so she can compute your business use percentage and fill out the depreciation and other tax forms properly. If you did not note your odometer reading on January 1, 2003 - you may want to estimate the reading. If you have a car repair or oil change bill from the beginning of the year, you should be able to back into a reasonable number.
2. Any business purchase made (even with a credit card) on December 31st counts as a 2003 business expense.
3. If you have inventory, you must take an accurate count on the last day of the year or as soon as possible in the New Year and prior to either receiving or selling inventory. Inventory is product you plan to sell at retail. It does not include items held for personal use, but can include samples or demonstration items. When you count inventory, your objective should be to get your total purchase cost, rather than the retail value (the cost is what is reported on your tax return). One easy method of counting inventory and adding up the cost is to take a sales receipt and write the quantity of each product you possess, and then multiply by your purchase price. Do not count sales aides such as catalogs or literature. Those are direct business expenses and not inventory items.
4. Get a file started to collect all the tax documents you will receive such as: 1099's, W-2's, Mortgage Interest statements, etc. This way you'll have an immediate place for filing important tax information until you give it to your tax accountant.
5. If you have not already gathered your receipts and tallied your expenses - Start NOW. If you do a little bit every week, you should have it all done well in advance of the April 15th filing deadline.
6. If you paid commissions or contract labor or other non-wage services in excess of $600 to any individual you will need to file a 1099 form for each individual by January 31st. These forms are readily available on-line at www.irs.gov or through your tax preparer.
7. Its not too late to start an Individual Retirement Account (IRA). IRA accounts need to be set up by April 15, 2004.
8. An important key to financial success in your business is to seek the advice of a trusted accountant who has experience in our industry. The goal to earn a profit includes tax responsibility. By keeping accurate, up-to-date business records and by working with an accountant, the tax responsibility of your business can be easily managed.
9. Make a promise to yourself to keep really great records in 2004.
10. Educate yourself and learn how to save potentially $1,000s in taxes.
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