How to Identify Small Business Tax Deductions
There are many small business tax deductions to become familiar with and take advantage of each year in order to save money. Other small business deductions are one-time deductions and will only be available the first year you open the doors of your new business.
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Start a new business and once the doors open you can deduct up to $5,000 the first year. This deduction includes all advertising expenses such as business cards or phonebook ads, utilities, office supplies and repairs.
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Use your car for business or if your business owns a vehicle, you can deduct some of the expense in keeping it on the road. You can keep track of all business related expenses and deduct them at the end of the year or you can take the standard mileage rate deduction by tracking the business related number of miles you drove for the current year.
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Deduct current related education expenses to your business, trade, or occupation. Payments made to attorneys, consultants or tax professionals are deductible in the year they are incurred.
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Pick up the tab for any type of entertainment or function for a prospective customer, such as dinner and drinks and you can deduct 50 percent of the cost as long as the function directly relates to your business and you discuss your business at the function.
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Travel for business or combine business with pleasure as long as the purpose of the trip is mainly business and you can deduct many expenses such as the cost of the plane fare, taxis, hotels, meals, dry cleaning, telephone calls, faxes and tips.
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Move from your home due to your business or job and deduct certain moving expenses. To qualify for this deduction, the new workplace must be 50 miles or more farther from your old home and your old workplace.
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Donate money from the business to your favorite charity and write it off. Write-offs are handled differently for different types of corporations so make sure you understand how this deduction works for your corporation. Keep in mind that taxes incurred in operating your business are usually deductible.
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