Using A Massachusetts Business Lawyer To Lower Your Tax Bill

There are Massachusetts business lawyers specifically trained in tax law and can help you lower your tax. The ins and outs of tax can be confusing as there are many different types of taxes. Tax planning for small business is actually a full time job and before you can combine your year’s tax you need to understand what is considered business income.

Any tax lawyer will tell you that record keeping is the most important part of tax law. The vast majority of businesses that lose audits do not lose them because they were being dishonest; they lost them because they did not have the records needed to disprove the allegations. Many times businesses will have a specific position that does all of the record keeping.

Any expenses that are necessary, ordinary or reasonable can be considered deductible for you small business. The items or services purchased must be specifically used for your business. If you make a purchase and use it for both business and home use then it may not be deductible. If you think the expense was necessary for the business to operate then it can be deducted as a small business expense. Make sure you can defend the deduction if you were to be audited.

Deductions relating to clients also need to be recorded and separated into different categories. The types of expenses you have will have different rates of deductions and if you cannot deduct an expense in one area you may be able to deduct it in another. It is important not to miss out on the right categories, or it may be the case that you will get fewer tax refunds than you could.

A Massachusetts business lawyer that specialize in tax law should e consulted if you fell you are not getting the most from your tax. Many times just speaking to someone can help you understand how the tax works and how you can benefit the most from your tax return.