Small Business Tax Deductions
Small business owners would always be on the lookout for opportunities to cut down on unnecessary costs to conserve resources or put them into better use. Sb tax deductions are opportunities that entrepreneurs would not want to miss. The important thing is for you to know which expenses are deductible and which are not.
Below are the six most common sb tax deductions:
1. Auto Expenses or Mileage. You can declare as tax deductible the parking fees, toll fees of your business car. Actual records can actually increase the deductible amount. To do this, make it a habit to check the odometer before and after a trip, the starting point and destination as well as the purpose of the trip.
2. Office Supplies, Equipment and Furniture. For this item, an entrepreneur has to exercise good judgment whether a new purchase on these items should be declared as tax deductible or should they be stated as depreciation instead.
3. Legal, Professional, and Association Fees. If you sought services from a professional, their fees can be declared as deductible. However, if their services were rendered during the start-up phase, their fees may have to be amortized. Same is true for publications or software purchased.
4. Advertising and Gifts Provided. These can be declared as tax deductible provided the amount does not exceed $25 for each gift.
5. Internet and Telephone Cost. If these are dedicated to the business they can be declared. Using your personal phone for business is deductible but only up to a certain amount.
6. Entertainment or Travel Expenditures. Keep detailed records for this one. Keep track of who you met, when, where, and for what business purpose was the expense.Return from Small Business Tax Deductions to Homepage