Top Three "Don'ts" For Small Business Owners

Disguise personal expenses as business expenses

Claiming 100% deduction for a vehicle that is used for both business and personal purposes

Claiming deductions for your spouse’s automobile, cell phone, gas, etc.

Claiming deductions for your children’s automobile, cell phone, gas, etc.

Pay workers “off the books”

Cannot deduct payments to workers if you do not issue corresponding W-2s or 1099s

Workers Compensation Insurance carriers are cracking down on ATM Withdrawals, Cash Withdrawals, and checks made payable to cash as the cash is typically used to pay workers “off the books”

Claim the Home Office Deduction if you own your home

While you may save a few hundred dollars each year you claim the deduction, doing so will not only expose your tax return to a high audit risk, but you may end up paying back thousands in additional taxes when you eventually sell your home

If you rent, the deduction is much more advisable…although you will still experience a high audit risk, you will not have any long-term negative tax consequences

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