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There is a lot of burden of taxes on business owners, especially the small business owners of Arizona. There are so many things they have to take care of during the Arizona Tax Preparation process. When the investments and profits are small, the taxes double up the pressure on the minds of small business owners.

Therefore, tax planning is a term that can help lessen the weight on the mind. Tax planning introduces you to a wide variety of tax options that help to reduce or eliminate tax liability. The small business owners need to review their income and taxes monthly. Following the tax planning, can help you make aware of the advantages that are legally available to you such as provisions, credits and deductions.

All the various tax planning strategies focus to attain similar goals such as :

• Enjoying available tax credits
• Reducing the tax rate
• Decreasing the amount of taxable income

To choose the correct and suitable tax planning strategy, you must have a rough estimate of your income in the coming few years. Having good estimates increases the probability of having successful tax planning strategies.

Business Entertainment Expenses

We all know that hosting a party or event for the sole purpose of entertainment of the employees provides a good amount of deduction in your taxes. But to avail this benefit you must fulfil the desired criteria. Ever since the 2018 tax reform, the employers can avail almost 50% deductions in the taxes on meal expenses.

Business Automobile Deductions

According to the recent reforms, the mileage reimbursement rates for 2019 are 58 percent per business mile. The small business can take a good advantage over this. A lot of money goes in commuting while you meet clients at different places. The owners are permitted to take a certain amount of deductions for operating and maintaining their vehicle used for meeting business clients.

Home Office Deductions

Just a little extra paperwork can help you grab multiple advantages. If you work from home, you have to keep a little record to be able to avail the deductions. First of all, you must display your home address and phone number on the visiting cards and then keep all the records of national and international outgoing calls made through your phone. It's obvious to have a few business guests at home if you work from home office. So, to avail the benefit, you must get a logbook signed by all the guests.

A tax professional can give you a better knowledge about the other valuable insights, therefore you must always stay in touch with your tax advisor.