TAX DEDUCTIONS FOR YOUR BUSINESS
The Tax Deadline Will Be Here Sooner Than You Think. Here Are a Few Deductions You Might Consider for Your Business.
By Jeanie Swisher
Disclaimer--The following suggestions are for your information and should not be interpreted as legal advice. Always ask an accountant to check the deductions that might work for your business.
It's that time of the year again--April 15th looms ahead. But there are some great tax advantages to owning your own business if you know what's deductible.
"You get a raise every time you can legitimately avoid paying a tax on something for your business," says George Brown, CPA. "Every tax deduction you can find will save you money on your taxes."
Listed below are a few possible deductions that you can make:
* Accounting Service--Always hire an accountant when you're in business for yourself. With the continual changes in the tax laws, a good accountant will save you thousands of hard-earned dollars every year.* Education--The cost of a class or book that improves a skill that is required for your business is deductible. For example, any self-employed person can take a class in tax preparation or computers and deduct the cost.
* Damaged Property--If business assets are destroyed or damaged, you're entitled to a deduction for the loss.
* Organizations--Dues and other expenses for business organizations, chambers of commerce, or trade associations are deductible. The cost of attending meetings and seminars is also deductible, although meal deductions are limited to 50 percent of the cost.
* Janitorial Services--Cleaning services and trash removal is deductible as an operating expense. Don't forget cleaning supplies like paper towels, trash bags, and detergent.
* Containers--Boxes, cartons, envelopes, and packaging materials are considered to be part of the cost of goods sold.
* Books--Books, newsletters and all trade-related magazines are deductible.
* Bad Checks--These are deductible, along with the bank penalties and service fees.
* Telephone Answering Machines--These are fully deductible.
* Computer Software--Software for your computer can be depreciated over three years or you can deduct it the first year as a business asset.
* Samples--When these are used to publicize your products and services, they can be deducted as the cost of goods sold.
* Prizes--Prizes for customers or suppliers are deductible.
* Equipment--Fax machines, modems, postage meters, printers, etc. are deductible.
* Mailing Lists--Rentals and purchases are deductible.
* Internet Access--This can be classed as "advertising" for a Web site or as "office expense" for the Internet access.
* Home Office--Check with your accountant for guidelines for home space deductions. Even if you fail to qualify for home office deductions, you can still deduct all legitimate business expenses other than those directly related to the business space itself.
Remember the old adage--"An entrepreneur is someone who will work fifteen hours a day to keep from working for someone else for eight."
And if you do so, there are fantastic tax advantages when you're in business for yourself. But, ALWAYS hire a good accountant. After all, those accounting costs are fully deductible.
RUSH $5.00 for Jeanie Swisher's latest tips on how to be a successful business owner. With more than 30 years of experience, Swisher will hand you these gut-level tips that will start the with a bang. Having your own successful business can often start with a few extra dollars to spare. Write to:
Business Tips SPECTRUM PUBLISHERS 34 South High Street #1200 West Chester, PA 19382 USA
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