Using a Qualified Dividends and Capital Gain Tax Worksheet when determining your tax liability can be crucial to the success of your business. Using this work sheet will allow you to quickly see how much of your profits will turn out to be before you settle your taxes. This is critical information that should be utilized as soon as possible in order to avoid penalties, not to mention a bit of stress.
Dividends and DVCS worksheets are available online in many different formats. You can find them in Excel format, if you prefer. If you don’t have access to the internet, you can purchase professionally formatted worksheets from the bookstores or even from the library. It’s important to read the small print on these worksheets, so you are aware of any potential tax consequences.
Let’s talk about some of the sections in the worksheet that you’re going to want to pay attention to in order to maximize your profit and minimize your tax liability. You are going to want to write down your gross receipts on the left side of the sheet, and pay attention to the right side to record your income after expenses. The beginning of your worksheet should look something like this:
Next, you’re going to want to record your gross receipts. This includes your gross purchases, any sales made at your business, and all other income. This is going to be your gross income.
The next section is for writing off expenses. Any expense that has been paid or incurred since you bought the business in a sale or other transaction is going to need to be recorded. Record the expense on the left side, with the source of the expense listed on the right side.
The next section is for writing off income expenses. The income expenses include your own costs, expenses for buying inventory and equipment, and all other income generated from your business. This is also where you’ll record any expenses incurred by your employees, such as gasoline, office supplies, etc.
The final section is for writing off income to buy and lease back your business. Here, you’re going to record the taxes you’ve already paid, including any additional fees that might have been assessed. Since all of your personal expenses are going to be deducted in this area, you’ll need to make sure that you document all of these expenditures. The best way to do this is to keep your records organized so you know where each deduction should be placed.
By following these steps and using a qualified dividends and capital gain tax worksheet, you will have the information you need to file your taxes accurately. I hope you found this article useful in helping you prepare for your tax season.
