By Jeanie Swisher
It's that time of year again. April 15th looms ahead. But there are some truly great tax advantages to owning your own business.
"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 just a few deductions that you can make.
• Accounting Service--Always hire an accountant when you are in business for yourself. With the continual changes in the tax laws, a good accountant will save you thousands of hard-earned dollars.• 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 are entitled to a deduction for the loss.
• Credit Cards--Business purchases made with a credit card are fully deductible.
• Organizations--Dues and other expenses for the business organizations, chamber of commerce, or trade associations are deductible. The cost of attending meetings and seminars are also deductible although meal deductions are limited to 50 percent of the cost.
• Janitorial Services--Cleaning service and trash removal is deductible as an operating expense. Don't forget cleaning supplies like paper towels.
• 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.
• Telephone answering machines are 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 used to publicize your products and services, these 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 of mailing lists are deductible.
• Internet Access--This can be classified as "advertising" for web site expenses 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.
These are just a few tips from the latest book by Bernard Kamoroff, CPA, entitled, "422 Tax Deductions for Business and Self-Employed Individuals." This book is available along with many others for networking entrepreneurs for "express shipping" through our web site--www.sprectrumpublishers.net
These are fantastic tax advantages when you're in business for yourself. But always hire a good accountant. All accounting costs are deductible.
*******Disclaimer--These suggestions are for your information and this is not to be interpreted as legal advice. Always ask your accountant.
Jeanie Swisher is a freelance writer and the President of Spectrum Publishers. Her UP-TO-SPEED Business News is packed with beefy articles like this every month. Get a FREE one-year subscription "online." Simply type "subscribe" in the subject area and send to:
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