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A Few Tax Tips for Small Business Owners
Posted By: hierh2dm;
Category: Business, Finance & Industrial;
November 28, 2008
Do you own your own small business? Are you looking to save some money during tax time? Here are a couple ideas for additional tax deductions for small businesses.
1
Deduct all traveling expenses when conducting any type of business on a trip. This includes gas, any food purchased, hotels, etc. Also keep in mind that the government usually reimburses more per mile than the actual price of gasoline, so keep a log of miles rather than the cost of filling your tank.
2
Deduct all charitable contributions; however make sure the companies you are donating to are considered “qualified organizations” by the IRS. Look up the IRS online and get a list of those names that are acceptable.
3
If you use your vehicle for both personal and business related matters, you make be able to deduct the cost of the vehicle, including annual repairs, from your taxable income. Check with your CPA on whether or not those rules apply to you. Simply using your vehicle as a form of advertisement (example is having your logo somewhere on the car) makes it a viable deduction.
4
All gifts to employees that total under $25 are tax deductible. All purchases under $75 do not require a receipt, although it is a good idea to keep a log. Also, holiday parties are 100% tax deductible, so reward your employees with a fabulous end of the year bash.
5
Keep a close eye on inventory. All items that are given away, damaged, or out-dated can provide you with valuable tax deductions.
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