Vast numbers of small business owners run their businesses from home. This will not only save money on office rent, but can also qualify you to take the home office deduction on your taxes. However, there can be some legal impediments to working from home.
If you’re self-employed, you likely need to pay estimated taxes each year. These are quarterly prepayments of both your income tax and Social Security and Medicare taxes due for the year. You must pay estimated taxes if you are a sole proprietor, partner in a partnership or member of a limited liability company, and you expect to owe at least $1,000 in federal tax for the year.
After small business owners allocate the lion’s share of their business capital toward operational infrastructure, meager scraps may remain to invest in their human capital — the small business employees who provide the lifeblood of an organization. However, enterprising entrepreneurs don’t require big business budgets to equip their workforces with the knowledge, tools and motivation to help their businesses thrive. With affordable small business resources and a little ingenuity, you can invest in your small business’ employees and receive both tangible and intangible dividends for your business.
Question: Does the standard mileage rate cover all car expenses, including tires, oil changes, car washes, gas, and minor repairs? What about deducting car mats, car fragrance, car seat covers, etc? Does the 57.5 cents per mile deduction cover parking?