By Jimmy Lopez | Owner, Pupilo Tax (Est. 1985)
If you are running a business in Yonkers and using the same tax software you use for your personal return, you are burning money. I’ve seen it happen on South Broadway for over 35 years: a hard-working business owner tries to save $300 on an accountant and ends up overpaying the IRS by $3,000.
As a small business accountant in Yonkers, I spend half my time fixing the mistakes made by "do-it-yourself" software or inexperienced preparers who don't understand Westchester County expenses.
Here are the 5 deductions I see local business owners miss most often.
1. The "Home Office" Calculation (It’s Not Just a Room)
Living in Yonkers or NYC is expensive. If you use a part of your home exclusively for business, you can deduct a percentage of your rent, mortgage interest, utilities, and even repairs.
- The Mistake: People represent this incorrectly and trigger an audit, or they are too scared to claim it at all.
- The Reality: If documented correctly, this is one of your biggest legitimate deductions.
2. Vehicle Expenses: Mileage vs. Actual Expenses
Do you use your car to meet clients in White Plains or pick up supplies in the Bronx?
- The Mistake: Most people just guess their mileage. The IRS hates guesses.
- The Fix: We analyze whether the "Standard Mileage Rate" or "Actual Expenses" (gas, insurance, repairs) yields a bigger refund for you. In an area with high insurance rates like ours, "Actual Expenses" often wins.
3. The "Meals" Trap
Buying lunch for yourself is not deductible. Buying lunch for a client or a potential partner is. The rules on this changed recently. You need to know what is 50% deductible and what is 100% deductible. If your current bookkeeper isn't asking you who you ate with, they aren't doing their job.
4. Startup Costs (Before You Opened Your Doors)
Did you spend money on renovations, permits from the City of Yonkers, or advertising before you made your first dollar? Many new business owners think they can't claim those. Wrong. You can amortize these startup costs over time. It’s "found money" that you already spent.
5. The S-Corp Election (The Big One)
This is where the real strategy happens. If your LLC is making a decent profit, paying Self-Employment tax on everything is a rookie move. By electing to be taxed as an S-Corp, we can split your income between "Salary" and "Dividends," potentially saving you thousands in Social Security and Medicare taxes legally.
Stop Guessing with Your Business
You didn't start a business to become a tax expert. You started it to make money.
I have been helping small businesses in Yonkers stay compliant and profitable since 1985. Don’t wait until April 14th to ask for help. By then, the strategies are gone.
Need a Small Business Accountant in Yonkers? Call Pupilo Tax today or walk into our office at 206 S Broadway. Let’s look at your books before the IRS does.