Busting the Most Common Tax Myths

Pile of tax papers at the Best CPA Firm in Miramar

Without the help of the best CPA firm in Miramar, it can be extremely challenging for small business owners to keep up with the ever-changing tax code. A lot of misinformation out there about taxes and tax planning can leave any person spinning their wheels. If you want to avoid making bad decisions for your company based on tax misinformation, you’ll want to set the record straight about the most common tax myths.

Closeup of hands, paper, and a calculator at the Best CPA Firm in Miramar

The Most Common Tax Myths Debunked!

MYTH #1: “The best way to decrease tax liability is to buy more equipment.”  

If you’re looking to reduce your tax liability, you’ll want to avoid spending your money on more equipment. Even after spending $250,000 on new pieces of equipment that may save you about $75,000 in tax liability, you’ve still spent $175,000.  

Furthermore, deciding to borrow some money to purchase that equipment will cause you to even spend more money in interest on the debt. The best way to go is to buy the equipment you require without thinking that over-purchasing allows you to save money at tax time. 

MYTH #2: “Startup costs are never tax-deductible.”

Startup costs refer to the costs you incurred on training, advertising, and other capital expenses even before your company opens its doors. While some of these costs can be deductible right away, other startup costs can be eventually depreciated. Since a limit of the amount of startup costs can be promptly deducted, it’s best to consult with a tax professional about the best way you can approach this area. 

MYTH #3: “You’ll always get tax benefits if you incorporate your business.”

While incorporation may make sense for some small businesses, it can also be a costly proposition. For instance, you may spend $1,000 in fees and legal help as you try to set up your corporation, only to find out that you haven’t managed to reduce your tax burden.  

Woman with a tax consultant at the Best CPA Firm in Miramar

Looking for the Best CPA Firm in Miramar?

At Tax CPA 1, we always provide high-quality service for what you need, want, and deserve. Contact us today if you have any questions or concerns.