Business Tax Checklist
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Small Business Tax Checklist
Income
Be sure to include all income sources when creating your small business checklist. This could include income from your day-to-day operations as well as any investment or ancillary income.
- Gross receipts from sales or services
- Sales records for accrual-based taxpayers (accounts receivable)
- Returns and allowances
- Business checking/savings account interest (1099-INT or statement)
- Other income, including rental income, federal and state gasoline or fuel tax credit or refund
Cost of Goods Sold
Some categories may not apply each tax season, so you should only include what applies for 2021 on your small business tax checklist. If you produce, purchase, or sell merchandise in your trade or business, you’ll need to take your inventory into account at the beginning and end of the year.
- Beginning inventory total dollar amount
- Inventory purchases
- Ending inventory total dollar amount
- Items removed for personal purposes
- Materials and supplies
Expenses
A wide range of costs can fall under applicable business expenses. Don’t miss recording any of these on your small business tax preparation checklist. Our tax pros will help you find each and every deduction you deserve.
Advertising
Phones (landline, fax or cell phones related to business)
Computer & internet expenses
Transportation and travel expenses
Local transportation – Did you take any business trips this year? You’ll want to include your mileage along with any car and truck expenses. For public transportation, parking and tolls, you should include your contemporaneous log (recording of transactions as they happen) or receipts.
Travel away from home – You should account for mileage or actual expenses if you drove – or airfare for any flights. Be sure to include costs for hotels; meals and tips; and taxi fares and tips. Remember to include any miscellaneous expenses, such as your internet access (hotel, internet café, etc.).
Commissions and fees
Contract labor expenses paid to subcontractors and independent contractors
Depreciation
Cost and first date of business use of assets
Records relating to personal use of assets
Sales price and disposition date of any assets sold
Documentation of prior-year depreciation
Amortization of intangible assets (e.g., patents or copyrights held)
Business insurance
Casualty loss insurance
Errors and omissions
Other
Interest expense
Mortgage interest on building owned by business
Business loan interest
Investment expense and interest
Professional fees
Lawyers, accountants, and consultants
Office supplies
Pens, paper, staples, and other consumables
Rent expense
Office space rent
Business-use vehicle lease expense
Other
Office-in-home
Square footage of office space
Total square footage of home
Hours of use, if operating an in-home daycare
Mortgage interest or rent paid
Homeowner’s or renters’ insurance
Utilities
Cost of home, cost of separate improvements and first date of business use
Wages paid to employees
Employee benefit expenses
Other expenses
Repairs, maintenance of office facility, etc.
Estimated tax payments made (including property taxes and sales taxes if applicable)
Other business–related expenses
Health insurance – Whether you’re a sole–proprietor who is covering their family, a partner or you have S corporation shareholders, you’ll want to account for premiums paid on behalf of those individuals. Also, you should gather information on your spouse’s employer provided insurance if applicable.