Many business tax deductions go overlooked by small business owners that can help them bring home more money at the end of the year. Some tax code provisions can be used to yield personal benefits such as combination business trips and vacations.
Auto Expense Deductions
If you have
a business that owns its own vehicle or set of vehicles, you will be
able to deduct at least some of the costs that you accumulate to keep
those vehicles on the road and running. Small business owners are
able to deduct the standard mileage rate for each mile driven in
company vehicles, in addition to business-related tolls and parking
fees. For the year 2013, the standard mileage rate stands at 56.5
cents per mile driven for business vehicles. In order to qualify for
the standard mileage rate deduction, you must use the deduction in
the first year the car for the business is used. Additionally, you
cannot use the standard mileage rate deduction if you have claimed
another type of auto expense deduction, known as the claimed
accelerated depreciation deduction, in past years, or if you have
taken the Section 179 deduction for the vehicle. By using the
accelerated depreciation deduction, you are able to deduct the
depreciation value of the vehicle after it was used as a new car for
the business.
Deducting Books, Legal, and Professional Fees
If you have
used business books to help you with your business and avoid seeking
the counsel of legal and tax professional, you are able to fully
deduct the cost of the books as a cost of doing business. Moreover,
fees charged by lawyers, consultants, and tax counselors can be
deducted in the year in which they were charged. If the help received
from these professionals was sought and received over several years,
the fees must be deducted over the length of time the help was given.
Deducting the Cost of Entertainment
If your
business has taken the responsibility of picking up the expense of
entertaining current or possible customers, you could be possibly be
able to deduct up to fifty percent of the cost. For example, if you
are starting
a small business in Texas,
and the cost is directly related to business matters and there is
business communication at the event, you are eligible to deduct this
expense from your taxes. If the entertainment takes place immediately
before or after business is conducted, this expense can be deducted,
as well. Be sure to take notes on the bill or receipt that you pay
for by writing the business purpose of the event.
Deducting Interest
This
deduction is always overlooked. If you use a credit card to purchase
business items or other services, the interest accumulated by the
charge is fully tax-deductible. Personal loans that are taken out for
the business can be used the same way. Cover the purchases by keeping
good records that accurately demonstrate that the credit or loan
money was indeed used for your business will help you to avoid
problems.
These are
just a few of the many tax deductions that are made available to
small business owners, which can be highlighted when working with
assistance such as that offered by Tarrant
Small Business Development Center.
This promotion of business is very beneficial and should not be
overlooked. Small business owners are able to bring back much more
than expected at the end of the year most of the time.
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As
the assistant manager for a web marketing service provider, Dan works
as a posting guest so as to undergird corporations inside the U.S. He
lives in Cali, and is delighting in the seasons together with his
lovely spouse plus their three rug rats. Mr. D summons sightseers to
look at
his G Plus confessions when they get a chance.
The Top 4 Most Overlooked Tax Deductions Available To Small Businesses
Written by: Brian Daniel Young Published by: Cerilene.com Copyright holder: Brian Daniel Young on
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