Taxes for Handyman Business

Here are some good tax tips for a small business owner:

• Keep good records. This is essential for accurately reporting your income and expenses to the IRS. Make sure you keep receipts, invoices, and other documentation for all business-related purchases.

• Take advantage of all available deductions and credits. There are many deductions and credits that small businesses can take advantage of, such as the home office deduction, the Section 179 deduction for equipment purchases, and the deduction for business meals.

• Pay your taxes on time. This will help you avoid penalties and interest. The IRS offers a variety of payment options to make it easier for small businesses to pay their taxes on time.

• Get professional help if you need it. If you are not sure about your tax obligations, it is a good idea to speak to a tax professional. A tax professional can help you understand your tax liability and prepare your tax returns correctly.

Here are some additional tips that may be specific to handyman business owners:

• Deduct the cost of tools and supplies. Handyman businesses typically have a lot of tools and supplies that are used for business purposes. You can deduct the cost of these items as business expenses.

• Deduct travel expenses. If you travel for business purposes, you can deduct the cost of transportation, lodging, and meals.

• Deduct a portion of your home expenses if you use part of your home for your business. If you use part of your home for your handyman business, you can deduct a portion of your home expenses, such as mortgage interest, property taxes, and utilities.

• Consider setting up a retirement plan. Retirement plans can help you save for retirement and reduce your taxable income. There are a variety of retirement plans available to small businesses, such as SIMPLE IRAs, SEP IRAs, and 401(k) plans.

IRS Resources

Small Business and Self-Employed Tax Center

Schedule C Instructions

Schedule C Form

Below are some good YouTube videos to check out.