All Topics > Business Services > 10 Ways to Pay Less in Tax > Illinois >

10 Ways to Pay Less in Tax Chicago Heights IL

Small business owners face unique tax issues. Here are some ideas to help you get the most from your business deductions, avoid problems that can affect small business owners, and plan for the future.

Local Companies

Elam Income. Tax Service
(773) 264-5339
11539 S Throop St
Chicago, IL

Eric Jmba James Cpa
(773) 298-1652
9415 S Western Ave
Chicago, IL

Apex Accounting & Tax Service
(773) 488-5889
8009 S Indiana Ave
Chicago, IL

Babs & Associates Inc
(708) 756-1099
42 W 14th Pl
Chicago Heights, IL

Liberty Tax Service 12042
(708) 755-5070
152 W Joe Orr Rd
Chicago Heights, IL

Personal Tax
(708) 709-0329
1020 Chicago Rd
Chicago Heights, IL

Jm Tax Service
(708) 756-1041
731 Chicago Rd
Chicago Heights, IL

H & R Block
(708) 755-4052
95 W Joe Orr Rd
Chicago Heights, IL

Jackson Hewitt Tax Service
(708) 756-7500
276 W Lincoln Hwy
Chicago Heights, IL

H & R Block
(708) 755-4052
95 W Joe Orr Rd
Chicago Heights, IL

Keep good books and records for your business. Keep these records separate from records of your personal expenses.

Keep your business records as long as necessary. Generally, this is three years after the date you filed your income tax return. However, in some cases, it's a good idea to keep records even longer. Keep detailed depreciation records for as long as you own business property. You'll need them not only to figure your current-year depreciation deduction but also to figure your basis when you sell or otherwise dispose of the property.
If you need to hire employees for your business, consider employing family members.

This will allow you to shift income to members in lower tax brackets as long as they provide bona fide services to the business. (Depending on earnings, there may be no tax at all on wages paid to the child.) You also avoid the employer share of FICA on wages to your child under age 18. And you can set up a fully deductible health insurance plan if your spouse is your employee (since the plan will cover employees and their spouses -- that's you).
If you need to hire employees for your business and don't have any suitable family members, consider hiring workers who will give you a special tax benefit. Hiring certain workers entitles you to claim a tax credit (work opportunity credit, empowerment zone credit, or Indian employment credit). Before advertising for help, check with your state employment agency on whether it can assist you in getting workers who will entitle you to a tax credit.
Use the standard mileage rate to deduct your car expenses as a way of simplifying your record keeping if you are eligible to use this rate.

But if you have all receipts to show your car expenses, figure your deduction using the standard mileage rate and the actual expense method; then choose the method that gives you the greater deduction. In either case, be sure to keep track of the dates, mileage, and purpose of your automobile use.
Keep records to substantiate your travel and entertainment expenses.

While you don't have to keep receipts for expenses (other than lodging) of $75 or less, you must still note in a log or diary the business purpose for the expense, the date it was incurred, and the amount you spent.
Plan equipment purchases carefully to get the most from your depreciation deductions.

Because of conventions, the timing of your purchase can affect the amount of depreciation you can deduct. Or you may be able to expense up to $24,000 ($25,000 in 2003) of the cost of equipment as long as you begin to use it by the last day of the year.
Use retirement plans not only to save for your retirement needs but also to reduce current taxes.

If you have not yet set up a retirement plan, consider a Keogh, SEP or SIMPLE plan to put more away on a tax-deductible basis than you can under an IRA. But if the tax year has closed and you haven't set up a Keogh, then look to the other plans, which allow you to set them up and make contributions until the due date of your return (including extensions) that will be deductible for the prior year. For example, if you receive a four-month filing extension, you can set up a SEP and fund it for 2001 as late as August 15, 2002.
If you have a sideline business that shows a loss, make sure you run it in a businesslike way, in order to prove your profit motive (so your loss will be deductible).

Keep separate books and records, and business bank accounts, and change business operations with an eye toward making a profit.
File your income tax return on time or obtain a filing extension.

If you don't, you risk interest and penalties for late filing. You also lose the opportunity to make certain tax elections required to be made on a timely filed return.
If your business suffered a loss, get the most benefit from a net operating loss.

Carry back the loss to generate an immediate tax refund. Or, if you anticipate greater profits in the future that will put you into a higher tax bracket, consider waiving the net operating loss carryback and carrying your loss forward to 2002. Be sure to keep track of NOLs arising before 1998 separately from those in 1998 and later years because of different carryforward periods.

Featured Local Company

Elam Income. Tax Service

(773) 264-5339
11539 S Throop St
Chicago, IL

Read more about 10 Ways to Pay Less in Tax

- Increasing Remodeling Business Chicago Heights IL

If you ask a remodeler -- or any businessperson, really -- if he or she would like business to grow without having to spend a fortune on more marketing, few will decline. The real question isn't whether or not to grow your business, it's how to do it.

- CRM Overview Chicago Heights IL
- Ways To Impress Others Chicago Heights IL
- Affiliate Marketing Commissions Chicago Heights IL
- How To Make Money At Home Chicago Heights IL
- Selling Franchise Chicago Heights IL
- Improve Your Mortgage Business Chicago Heights IL
- Earning Money through Paid Surveys Chicago Heights IL
- Getting New Network Marketing Leads Chicago Heights IL
- Money Making Tips Chicago Heights IL

- Increasing Remodeling Business Chicago Heights IL

Related Local Event

Quality Expo-USA
Dates: 10/14/2009 - 10/17/2009
Location: Donald E. Stephens Convention Center
Rosemont, IL
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History