When a person contacts a licensed agent of Internal Revenue Service, they are advised that IRS just demands you to submit a detailed list of all the items which you think are liable to small business tax deductions. If you know where exemptions are and what may be deductible, there may be many chances of small business tax reductions. An organized record-keeping and documentation of your deals may ease the statistical work of your tax professional. As a result, you may save not only a lot of money but feel convenient during any possible audit. Running a small business, you may be looking for small business tax reductions, here are five you may not be aware of.
Home business office
Usually, small businessmen prefer to establish their offices at home but remain under constant fear for claiming even legitimate tax reductions. If your office is not being used as a living place or its accessories are not being utilized for household purposes, in accordance with the Internal Revenue Service exemption policy, you can claim tax reduction.
Travel and vehicular expenses
A businessman has to go on frequent business trips. Defrayal on such outgoings may include mileage, tolls, parking fees and possibly casual maintenance charges. All these expenses can be claimed for inclusion in small business tax reductions. A wise taxpayer always keeps details and records of all such expenses. While preparing tax file, your tax professional will check the receipts and calculate the tax reduction because these travel and vehicular tax reductions are applicable in small business according to publication 463 of IRS.gov.
Advertizing and publication
For expansion and promotion of any business, advertizing and publication play an indispensable role. For this purpose, businessman has to lend the services of advertizing and publication agencies. A lot of money may incur on such business promotion campaigns. IRS offers tax reductions but a competent financial and tax planner, Sam Fawaz advises, “Professional publications should be amortized over the subscription period if prepaid.”
The internet and telephone are regarded as the nervous system of any business. For contacting customers and fellow community, a businessman has to spend a lot of money on the internet and telephone services. Any small business dealer can claim the benefit of internet and telephone tax reductions according to publication 535 of IRS.gov.
Miscellaneous tax privileges
A businessman has to purchase office equipment and furniture. According to Carin Price Mueller an award-winning personal and consumer writer, miscellaneous tax privileges for professional training, gifts and entertainment, software expenditure, declared bad debts, interest on loans, charity and business insurance premiums up to one year are being offered as small business tax reductions. However, reaping the complete benefits of small business tax reductions is a complicated process. If you are careful of maintaining good records with receipts, a competent tax professional can save you a lot.