3 More Tax Tips for Restaurant Owners
Last blog we shared a few tax tips for restaurant owners, and it was such a hit we decided to post a few more. Remember, you can download our free playbook "11 Tax-Saving Tips for Small Biz" right here, for even more awesome tactics.
1. KNOW YOUR DEADLINES
April 15th is the most dreaded day of the year for nearly all Americans, while most business entities can wait until tax day, C-corporations are required to file within 10 weeks after the fiscal year ends, which is normally December 31st. So, make sure you're working with your bookkeeper or CPA to ensure you're on top of your restaurant's Tax Day.
2. DON'T SPEND YOUR TAX MONEY
Avoid using taxes collected from employee payroll to pay business expenses. This unfortunately common practice upsets the IRS a whole lot, and the last thing you want to do is make the IRS mad. So, when you withhold taxes, send them to the IRS!
3. DON'T SELL YOUR OLD EQUIPMENT
If you want to get rid of property like old stoves or cutlery, find out whether it would be better to abandon it (an ordinary loss) or to sell it (a capital loss). An ordinary loss is fully deductible, so find out how your property may be classified under Section 1231 to determine how you should rid yourself of it.
For more tax-saving tips, download our free workbook, "11 Tax-Saving Tips for Small Biz."