Business Tax Deductions
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....