Top Tips to Keep Taxes from Being Taxing

It's a fact of life. Everyone has to pay taxes, and so do businesses. Don't make them taxing. Here are some things to remember to make tax time as easy as possible.

1. Deductions.Keep detailed records of expenses including healthcare, salaries and rent. If more than half of your trip was devoted to business, you can deduct your travel expenses, as well as other business-related expenses such as meals or hotel stays.

2. Employee Taxes. Be sure to pay the proper amount of unemployment, FICA, Medicare, Social Security and federal and state taxes. Check with your accountant on the correct amounts for 2011.

3. Estimated taxes. Be sure to keep up with your estimated taxes due in April, June, September and January, to avoid cash flow problems or an IRS penalty.

4. Sales Taxes. If you sell a product, you will need to register with the Colorado tax department and pay sales taxes. Internet companies may be exempt from sales taxes currently, but pay a use tax instead.

5. Keep your Records. Be sure to keep all tax records for a minimum of 7 years. Include 1099s, expense receipts, mileage logs, etc.

6. Tax Deadlines. April 18 is the personal tax deadline and isn't the only important date for taxes. Keep an eye on your calendar to avoid missing important due dates for estimated, sales, and payroll taxes.

7. Loans. The principal and interest of your business loans might be a business expense and can be deducted.  Check with your accountant. to see if your loan qualifies.

Although this is not legal advice, it's a good list to begin your tax planning process.