The New 1099-K For Small Businesses
If you are a small online business looking for some ways to save on your next tax bill, then you should be looking at the 1099K you will be receiving from online sites, like Etsy, Ebay, Amazon.
Only those with $20,000 or more in gross sales will receive the new form.
The number of 1099-K forms going out range from 8 million all the way to 53 million, meaning that hundreds of millions of dollars will be reported on this new online sales form by online sales companies.
In light of this reported income you can look at deductions and making sure you take advantage of any expenses you can deduct from your tax bill.
The deductions range from healthcare, depreciation of business vehicle, home office deduction, professional fees, retirement tax credit, travel costs, and more.
The largest tax credits you want to make sure you take advantage of if you can(consult your tax accountant), alternative energy credit, adoption tax credit, earned income credit and American opportunity credit(education).
And for some of the most outrageous deductions filers have claimed, some reports include, cosmetic surgery, trailer rental for family, speeding ticket, golf trip for employee and friends, replacement of cell phone, and more. We assume that these are legitimate expenses depending on how they are classified and explained.
To see this graphic chart visit a outright.com