8 Small-Business Tax Deductions You Should Know By Now

Small-business owners new to their role are expected to ramp up quickly. They need to have strong leadership skills (even when don’t come naturally), they need to think quickly on their feet, and sooner rather than later, they need to become tax experts.

Without a basic understanding of the tax code – and its myriad of tax breaks – small businesses risk leaving valuable funds in the hands of the taxman. Here are eight deductions to keep in mind year-round, so that you’ll be prepared to take advantage of them when you file:

1. Business-related travel – Keep a running log of mileage, parking, and tolls used when traveling for work, including visits to clients and conferences. If your business has a dedicated car or fleet for deliveries, keep track of odometer readings. Be specific in your record-keeping to distinguish between business and personal trips.

2. Self-improvement — You can deduct the cost of training manuals, books, and classes that help you improve your expertise. Note that these deductions apply only to maintaining your skills and not to switching careers. “If you’re an engineer and you’re going to medical school to become a doctor, the cost is not deductible,” notes Steve Henley, national tax practice leader at CBIZ, an accounting and tax-services provider. “But if you’re an  engineer taking some classes to really improve your abilities and skills as an engineer — not to qualify you as an engineer — those classes would be deducible.” Fees paid toward member associations and for professional certifications can also usually be deducted.

3. Shelter and power — If you work out of your home and qualify for the home-office deduction, then, in addition to a percentage of your rent or mortgage interest, you can write off the cost of maintaining your work space. (This is based on the percentage of square footage your work space occupies in your home.) In other words, hold onto your water and electricity bills — and don’t feel too guilty about cranking up the space heater in your garage-turned-office space.

4. Selling yourself — The cost of promoting your talents as a service provider or the trustworthiness of your business is the price of doing business, and the IRS recognizes that. The cost of advertising, developing a website, and designing and printing your business cards can be deducted. You may also write off travel and registration costs for promoting your company at a trade show.

5. Equipment – Cell phones, computers, and other equipment that are used solely to run your business can usually be deducted.

6. Startup costsIf this is the first year of your business, you could deduct up to $5,000 of your startup expenses, such as the fees paid to attorneys or accountants to get you up and running.

7. Health insurance — If you are self-employed, you may be able to deduct insurance premiums for you and your family.

8. The cost of trashing mistakes — Businesses can take a tax deduction for the products they can’t sell — if they destroy them. “In order to deduct obsolete inventory, you have to dispose of it before the end of the year,” Henley advises. Another option: Donate the goods to charity and get a tax credit.

About Sarah Johnson

Sarah Johnson is a business writer and editorial consultant. Her work has appeared in CFO and CIO magazines.
This entry was posted in Money, Taxes and tagged , , . Bookmark the permalink.
14 comments
adamsblatt
adamsblatt

Men who feel they are little out-of-shape can take the help of special men’s long underwear as they are designed to provide a slim and trim look irrespective of the fat stored in your body. Gone are the days when men were less conscious of their appearances as opposed to women. Today, every individual has the right and desire to upgrade their look just the way they want. So, instead of surrendering to your sagging skin, order couple of long underwear’s and see the difference.

 

Visit Us: http://www.adamsblatt.ch/en/underwear/long-underwear.html

escollection
escollection

Junge, die sportlichen Casual-Look mehr als formelle Look genießen können für Lounge-Hosen für Männer zu entscheiden. Diese Hosen sind speziell auf die Bedürfnisse von Menschen, die noch eine funky bequemen Look wollen erfüllen. Diese Hosen sind sehr geräumig, da deren Mann sie findet es einfach zu gehen, sitzen oder einfach nur herumlaufen mit Freunden. Sie können die Hilfe von Online-E-Commerce-Websites, um unterschiedliche Muster der Lounge-Hosen in den Markt kennen.

 

Visit Us : http://www.escollection.ch/en/gallery/

foodfirst
foodfirst

Außerdem verbrennt Muskel eine größere Anzahl von Kalorien als Fett, und damit den Muskelaufbau kann helfen, den Stoffwechsel zu Prozess-und Gewichtsverlust für eine lange Zeit zu verbessern. Protein kann Ihnen helfen, die unerwünschten Pfunde loszuwerden und fühlen Sie sich voller. Aber es ist wichtig, die richtige Menge und die richtige Art von Protein, die gesundheitlichen Vorteile bekommen zu essen.

 

besuchen Sie uns: http://foodfirst.ch/women/weightloss.html

 

alliedpawn
alliedpawn

For instance, Allied Pawn shop has been doing business in Dubuque and the tri-state area for its righteous ways. Stores with simple openness can effectively draw in parts more clients and thus, rehash business. As area is so paramount, one of the first steps to take when beginning a pawn business is to hunt down an in a perfect world arranged storefront. 

 

Visit US:  www.yellowbook.com/.../allied-pawn_1870173391.html

Tax Attorney Hartford
Tax Attorney Hartford

This is a great information. This will help and encourage small business owners to pursue their career.

immigration
immigration

Very nice and helpful post...Thanks for sharing this.

seo4
seo4

I used to be able to find good advice from your blog posts.

macculam
macculam

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Rajesh das
Rajesh das

It is a voluntary group of medical device regulators from around the world who have come together to build on the strong foundational work of the Global Harmonization Task Force on Medical Devices (GHTF), and to accelerate international medical device regulatory harmonization and convergence.

James
James

This is a very interesting and comprehensive list! I will have to keep these in mind, especially point 1,2 and 5.

 

Many thanks,

James

http://www.mortgagepro.co.uk

stvweb
stvweb

Good list. I think a lot of small business miss out on the advantages of item 6. Being able to expense startup cost instead of capitalize them can help reduce the tax burden the first year.

Trackbacks

  1. [...] on February 15, 2013 Do you have a company car that rarely gets used? Do you pay a hefty sum to reimburse employees for mileage when they use their own cars for business? Perhaps it’s time to consider using a car-sharing [...]