Tax Season for Pennsylvania Small Business Owners
Running a small business in Pennsylvania comes with significant tax obligations — and significant opportunities for deductions that many business owners miss. The Pennsylvania Department of Revenue and the IRS Small Business Center both offer resources to help you understand your obligations. At Jordan's Auto Tags, we offer professional tax preparation services for small businesses throughout Bucks County.
Tax season does not have to be stressful. With the right preparation and professional guidance, you can minimize your tax liability while ensuring full compliance with federal and state requirements.
Track Every Business Expense Throughout the Year
The most common tax mistake small business owners make is failing to track deductible expenses throughout the year. Use accounting software or a simple spreadsheet to record every business expense as it occurs. Separate business and personal expenses by using dedicated business bank accounts and credit cards. The IRS recordkeeping guide explains exactly what documentation you need to keep.
Vehicle Expense Deductions
If you use your vehicle for business purposes, you can deduct either the actual expenses (gas, maintenance, insurance, depreciation) or the standard mileage rate (67 cents per mile for 2024). Keep a mileage log documenting the date, destination, business purpose, and miles driven for every business trip.
Home Office Deductions
If you use part of your home exclusively for business, you may qualify for the home office deduction. The IRS home office deduction guide explains both the simplified method ($5 per square foot up to 300 sq ft) and the regular method, which may result in a larger deduction.
Section 179 and Bonus Depreciation
Section 179 allows businesses to deduct the full cost of qualifying equipment and software in the year of purchase rather than depreciating it over several years. For 2024, the Section 179 limit is $1.22 million. Bonus depreciation allows additional first-year depreciation on qualified property.
Get Professional Tax Help at Jordan's Auto Tags
At Jordan's Auto Tags in Croydon, we offer professional tax preparation for individuals and small businesses throughout Bensalem, Levittown, Bristol, Burlington, and Bucks County. Walk in at 721 Bristol Pike or call (215) 826-9890 — no appointment needed.