Tax Deductions to Take Advantage Of
 A
general rule of thumb is that any money you spend in the operation of
your business can be used as a business tax deduction. You can take
business tax write-offs on office supplies, training seminars,
utilities, marketing, car expenses, outsourcing, even a lunch with a
client.
Here are five business tax deductions you can use to save money on your taxes.
1. Home Office Expenses
Did
you know that if you operate a home office you can take a write off a
portion of your mortgage? You will need to figure out how much of your
home's space is devoted to your home office and you can use that to
determine your deduction.
You can also write off the portion of the
utilities you use for your home office. You should be taking deductions
for any office supplies you are using to operate your business. That
includes pens, paper, toner, business cards, even staples and paper
clips. Other write-offs include the cost of Internet access, web
memberships, etc.
2. Meal and Travel Expenses
If
you have to travel as a part of doing business, those travel expenses
can be used as tax deductible business expenses. The cost of the travel
itself could be written off. Any meals you eat while you are traveling,
and your hotel expenses, are also legitimate business tax deductions.
You
don't have to travel to use meal expenses as business tax deductions.
If you meet with a client over lunch or dinner you can write the cost
of the meal off as a tax deduction. You can also take a business tax
deduction for meals eaten while attending training lectures or
seminars, even if those are local events.
 3. Car Expenses
If you use your personal vehicle for business
purposes, you can use the costs associated with your business use as
business tax deductions.
Not only can you write off any
gas expenses, you can also include a portion of your vehicle's
maintenance and upkeep, and any money you spend on parking or tolls.
4. Inventory Expenses
If you sell a product with your business, the cost
of purchasing those products can be used as business tax deductions.
Any items you purchase that will be sold, or will be used to create
another product, can be used as a tax write off.
5. Services Expenses
If you hire a freelance writer, use an accounting
firm, or hire a marketing service, those expenses can all be written
off on your year end taxes.
Knowing what qualifies as
business tax deductions can save you a lot of money every year on your
taxes. Remember to save your receipts so that you can prove to the
Internal Revenue Service that your deductions are legitimate.
Make sure to keep good records of how much was
spent, when it was spent, and why it was spent. If you are ever
audited, the more information you have available, the easier it will be
to prove that your business tax deductions were actual expenses for
your business.
Take advantage of business tax deductions and add that money to your business's bottom line.
You can see what the IRS says about business deduction by visiting
http://www.irs.gov/businesses/small/article/0,,id=109807,00.html
Business Tax Deductions - Points to Keep in Mind
- You can claim any of your business expenses as business tax deductions.
- Save your receipts. If the IRS does an audit, you will need to be able to prove that your deductions were legitimate.
- If you have a home office, you may be able to deduct a portion of your mortgage and utilities.
- You will be able to write off services, like your accountant fees.
- Any office supplies you purchase can be a business tax write-off.
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