Maximize Your Deductions
Running a small business in Burlington, NJ, comes with many responsibilities, and tax preparation is one of the most important. Whether you’re self-employed or run a growing company, understanding how to manage your taxes can save you money and reduce your stress during tax season.
At Ultra Tax Services LLC, we help small business owners file accurate returns and claim all the deductions they’re entitled to. To help you stay on top of your taxes, we’ve compiled a list of 10 essential tax tips that can make a difference in your bottom line.
1. Keep Accurate Records Throughout the Year
One of the most effective ways to prepare for tax season is to maintain accurate records. This includes saving receipts, tracking business expenses, and logging mileage for any business-related travel. Use accounting software to organize everything so you're not scrambling at the last minute.
Pro Tip: Organizing your records now means fewer headaches during tax time and ensures you don't miss out on key deductions.
2. Understand Which Expenses Are Deductible
Many small business owners are unaware of the wide range of expenses that are tax-deductible. These include office supplies, software, utilities, marketing expenses, and even a portion of your home if you run a home office. Knowing what you can deduct can significantly reduce your taxable income.
Some common deductible expenses include:
- Office rent
- Advertising costs
- Legal and accounting fees
- Travel expenses for business-related trips
3. Take Advantage of Section 179 Deductions
Under Section 179, small businesses can deduct the full purchase price of qualifying equipment or software purchased during the year. Instead of depreciating the asset over several years, Section 179 allows you to deduct the entire cost in the year of purchase.
If you've made any major purchases for your business, make sure to speak with your tax professional about whether you qualify for this valuable deduction.
4. Track Your Vehicle Expenses
If you use your car for business, you can deduct your vehicle expenses in one of two ways: the actual expense method or the standard mileage rate. For 2025, the standard mileage rate is 58.5 cents per mile. Keep detailed records of your business mileage to maximize this deduction.
Local NJ Insight: The busy Burlington area often requires travel to clients, so don’t overlook your mileage deductions!
5. Contribute to a Retirement Plan
Small business owners can contribute to retirement plans like SEP IRAs or Solo 401(k)s to save for their future while also reducing taxable income. Contributions are tax-deductible and can lower the amount you owe on your taxes.
This is a win-win situation for securing your financial future while gaining a tax benefit.
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