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Tax time is no fun for anyone. But when it comes to your small business, you may be looking forward to it even less. That first tax return will feel like a major milestone and it is. But it can also be a huge pain if you don’t know what to do.

That said, there are more than a few basic tips that you can follow to ease the pain. Here are some of the most helpful tips if you are a small business filing your very first tax return.

Review the Tax Return Totally

Some business owners just gloss over the tax return. Look it over thoroughly, seeing which line items you have to fill in. Moreover, be prepared to answer questions about the return. That might include the nature of the business, the location, and how many years you have been in business.

Also, make sure that your accounts have the right categories for both income and expenses so that you can properly file your return. Accurate and complete records are a must for any small business.

Depreciation Method

According to the IRS, there is a first-year deduction of up to $1,040,000 for equipment and furniture. This is instead of writing off those costs over a five to seven year period. Most small business owners would take the first-year write-off instead.

It is important to note that businesses that don’t have profits can’t deduct that first-year depreciation. Consider taking a slower depreciation so that your deductions will be available when the business finally has income and gets put into a higher tax bracket.

Home Office Deductions

Businesses that are based out of the home should also consider that they can deduct a part of their residence, marking it as a business deduction. The area has to be used exclusively for business, however.

Measure square footage of the home as well as the area used for the business. That percentage would then be applied to any home office expenses going forward.