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The end of the year is a great time to review your business operations. A critical part of this is tax preparation for your hoof-care practice. How prepared are you for reporting your business expenses?
In this column, I will focus on the United States-based farrier’s needs for federal tax preparedness. There are various ways to document business expenses for federal income tax purposes. One way is to organize expenses by categories listed in Schedule C of the Federal Individual Income Tax Return (Form 1040), the Federal Partnership Return (Form 1065) and the Corporate Tax Return (Form 1140).
The specific categories you decide to use will greatly depend on the particular information needs and how specific you want to be in your farrier business.
Here is a list of categorized expenses that you should consider. Utilizing these will save you time and simplify paper work come reporting time.