Tax day in coming up and we hear a lot from small business owners who mix up what they actually need to file for their personal taxes over their quarterly estimated taxes.
I spoke with expert CPA, Ofer Gabbay, head of Ofer E. Gabbay & Company located in New Jersey who deals with many types of accounting including small and family-run businesses. He shared his insights on several complications small business owners may face when filing their personal taxes.
What is the biggest misconception small business owners have about filing personal taxes?
The biggest misconception is in regards to the amount of tax they will owe. Many business owners don’t realize the deductions available to them with proper planning. Make sure you do your research and talk with a professional to ensure you are doing the most you can to optimize your deductions.
What is the biggest mistake small business owners make when filing their personal taxes?
Not seeking professional advice during the year and waiting until the following year to ask the questions. Business owners have a lot on their plate, but don’t put off asking questions about your taxes, the earlier you sort everything out the better.
What are the 3 things you think every small business owner should know about filing their personal taxes and why?
- You legally must file a return, even if you can’t afford to pay the tax due.
- Plan, plan, plan, with proper planning and the correct advice, small business owners can save thousands of dollars in taxes.
- My personal feeling, you don’t need to spend foolish money to save on taxes. You should always consider economics before taxes.
Ofer Gabbay is the owner and president of Ofer E. Gabbay & Co., CPA PC, an accounting firm located in Hackensack, NJ. He has been offering professional accounting & tax services to individuals and small to medium size companies for over 20 years.
This is not official tax advice offered by OnDeck, please consult a tax professional before making any decisions regarding your own taxes.