The Holidays are here; a joyful time filled with festive family fun, lights sparkling up and down the streets, beautiful décor displayed wherever you go, and sinfully delicious food.
AND THEN: Uncle Sam comes knocking down your door with a gift of his own; your tax bill.
Many Small Businesses have had to downsize and cut costs wherever possible to survive this economic storm. Therefore, Tax Season can be terrifying and most definitely stressful. However, there are some write offs Small Business owners may not be aware of that can lower their tax bill and hopefully their stress level as well.
Taxes Deduction
Yes, you read right; you can deduct taxes on your taxes. How? Any sales tax on business items, fuel taxes for business related travel, Real Estate taxes on any property used for the business. Although to clarify; unfortunately you cannot deduct federal income tax paid on business income.
Software and Subscriptions
Any software purchased in the year of 2009 can be 100% written off. Otherwise the deduction is generally written off over three years.
Legal and professional fee deductions
If you consulted an attorney about your small business, hired an accountant to keep up your books, or outsourced your computer services you can write off their fees.
Vehicle Deductions
You can deduct vehicle expenses by mile or for actual expenses such as maintenance and gas. The IRS is currently offering initiatives for environmentally friendly practices; if you purchased a Hybrid for your business in or after 2005 you could receive a credit of up to $3,150.
Telephone Charges
If you have a phone dedicated solely to your business you can write 100% of all charges.
Tags: deduction, small business, tax, tax bill, tax deduction, tax season, uncle sam