Useful Information!

Useful Information

Deduct This

Make sure you don't miss out on valuable business expense deductions. The complexity of the tax code comes in part from the fact that Congress appreciates that business taxation offers more than just revenue.

There are a number of expenses that you might be entitled to deduct. Make sure you take advantage of all that apply to your business. Common deductions include salaries, taxes and licenses, legal, accounting and other professional expenses, interest on business debt, advertising, rent, utilities, business cards and stationery, charitable contributions, Internet and e-mail services, postage and bank fees. More complicated deductions include travel, entertainment, meals, capital assets, catch-up depreciation, health insurance, automobiles and retirement plans.

Keep Track

It pays -literally- to keep good records. The IRS requires that you books show your gross income, as well as deductions and credits. Therefore maintain a detailed and organized record of your business transactions and supporting documentation.

"Maintaining a daily log of your expenses is ideal since it cuts down on the time you may have to spend sorting through your receipts and organizing your expenses."

Also follow these basic record-keeping tips:

  • Deposit all business receipts in a separate account.
  • Avoid writing "cash" checks.
  • Carefully record transactions you make with your business.

Links (State Government WebSites)