Tax Deductions Auto Shops Don’t Want to Miss
Tax Day is creeping up quickly! If you are like many people, the clock may still be ticking as you procrastinate filing your taxes. To help you out, we have put together an infographic with tax deductions that you don’t want to miss when you file your auto shop’s taxes. Some may be things that you wouldn’t think of so make sure to take some notes as you slide into home base this tax season!
If you haven’t started filing your shop’s tax returns and know you won’t make the deadline, make sure to keep reading below the infographic for information on how to file an extension this tax season!
*Check with your accountant or tax professional to make sure that these strategies could work best for your auto shop.
(Click below to view infographic full size.)
When You Know You Aren’t Going to Make the Deadline…File an Extension!
If you still haven’t started filing your auto shop’s federal tax return, you may want to consider filing an extension. For your help, we have put together some information on how to apply for an extension and important dates to remember this tax season. Follow these steps to avoid penalty and interest charges!
*Note: If you do decide to file an extension, you must estimate how much you owe (if you owe) and send in that amount by the due date. According to TurboTax, if you underestimate your taxes, file your return late, or do not furnish certain information by the due date, you will be charged the penalty and interest fees!
- Fill out Form 7004, which is an application for automatic extension of time to file certain business income tax information and other returns.
- If your business is organized as an S corporation, the income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. (You’re late! For calendar year taxpayers, this was March 15th!)
- If your business is organized as a C corporation, the extension is due by the 15th day of the 4th month after the end of your tax year. (For calendar year taxpayers, your extension is due April 18th!)
*For more specific details on how to file an extension, click here to view the Internal Revenue Service’s Instructions for Form 7004.
Though state guidelines for filing extensions vary, in many cases (unless you owe state taxes) your federal automatic extension can be used to extend your state return as well. Make sure to check your state’s tax form instructions before requesting a state extension!
Stay Ahead of the Game
As Tax Day 2017 passes us by, make sure to get a jumpstart on next year’s taxes by implementing these three quick tips throughout the year:
- Save your receipts for business expenses! It is important to have proof of your purchases when filing taxes.
- Track your mileage! If you use your car for work, make sure to document every trip that you make.
- Keep your business and personal expenses separate!
Best of luck this tax season! As always, if you want to learn how you can use online marketing to grow your auto shop, make sure to call CarCareCONNECT at 404.961.3330 and mention the promo below!
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