by: Richard A. Chapo
As we enter mid-March, taxpayers begin to become very interested in deductions. Following are a few that you may be entitled to claim.
Deductible Expenses
Office expenses
Rent or lease payments
Advertising
Costs of goods sold
Insurance costs
Utilities
Payments to independent contractors [file form 1099]
Accounting fees
Legal fees
Communication expenses
Credit Card Interest for business charges
Travel expenses
Vehicle expenses
Business-related meals and entertainment
Uncollected receivables
Bank fees on business accounts
Interest payments on notes
Excise and fuel taxes
Employment taxes
Real estate tax paid on business property
Special local assessments for repairs or maintenance to business property
Promotional costs that create goodwill such as sponsoring a youth team
Business association dues
Business-related magazines
Casualty losses
Beverage services
Credit bureau fees
Taxi fares
Telephone calls made on trips
Self-employment tax [if applicable]
Sales Tax Deduction Option
The American Jobs Creation Act of 2004 provides all taxpayers with the option to claim a deduction for state and local sales taxes instead of state and local income taxes. If you purchased a high cost item during 2004, you may find that the total sales tax you pay far exceeds your state income tax payment. If so, you should determine whether you should claim a larger deduction by using the IRS Optional State Sales Tax Tables found in IRS Publication 600.
The new sales tax deduction is a windfall for taxpayers in Alaska, Florida, Nevada, Texas, Washington, South Dakota and Wyoming. These states do not tax the income of their residents, which makes the sales tax deduction a very valuable deduction indeed! Regardless, taxpayers in all states should the possibility of claiming a sales tax deduction.
About The Author
Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
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2 comments:
I know this is old, but good post. I'd like to be self-employed, and I've been thinking about running my own business soon. I'll have to keep this post in mind. Instead of starting one from scratch, I've also been thinking about buying a business instead of starting one from scratch, even if it isn't home-based. Any suggestions? Advice? Thanks.
@K.Z. - Have you checked out BizTrader.com yet? It's this online global marketplace where you can buy a business and even sell a business. You can also use it to find professional help like accountants, brokers, lenders, etc. It’s a good place to find a business on the Internet.
Then there are always local small business groups. They can also be a valuable (or invaluable) resource.
Good luck!
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