| When running a business it is important to know how | | | | 5. Many states allow expenses incurred to repair and |
| much your tax burden is likely to be and how you can | | | | maintain business premises as a business tax |
| save on taxes. It is important to know what is | | | | deduction. In many cases cost of material and labor |
| deductible and how you can reduce taxes. The World | | | | can be claimed too. |
| Wide Web has in depth articles as well as tips on | | | | 6. Utilities, stationary, phone, fax, and internet |
| taxation and how one can save on taxes payable. | | | | connections, as well as computers, Xerox machines |
| The way to go about reducing taxes is to plan ahead. | | | | and more are eligible for deductions from your tax |
| Begin at the start of the tax year and note down | | | | payable. How much and what extent varies from |
| what you can due to reduce your business tax burden. | | | | state to state and you need to determine exactly how |
| Rules do change so you must read through the IRS | | | | much. |
| site for the current year to find out what applies and | | | | In addition to the above most states allow deductions |
| what does not. | | | | in tax payable if you include business travel, hotel |
| 1. Work out a filing system and collect systematically | | | | expenses, and car rentals and so on in your tax forms. |
| receipts for all business related activities. Remember | | | | Similarly if you attend any courses or seminars and |
| even small expenses like parking charges, courier | | | | conventions connected with your business the costs |
| costs, stationary, or food expenses incurred by the | | | | are deductible. |
| office could be eligible for a deduction. Maximize your | | | | In general other types of possible business deductibles |
| income tax deductions by collecting receipts for | | | | are: advertising expenses, marketing promotions, |
| business related expenses and recording and filing | | | | accounting fees, legal fees, staff health plan premiums, |
| them as per the IRS rules. | | | | consultation fees, and so on. In additions donations |
| 2. Keep track of expenses like business licensing fees, | | | | given to charities and other causes are tax deductible |
| business taxes, and membership fees paid to business | | | | too. |
| related organizations. Most of these are tax deductible. | | | | Consider tax strategies that will generate more tax |
| 3. Interest paid against borrowings to run or set up a | | | | deductions like income splitting and so on. What you |
| business is also tax deductible. Similarly fees paid to | | | | need to do is find out where you can save tax and |
| banks and other lenders for processing loans or to | | | | ensure that you carefully tabulate these expenses and |
| reduce interest rates on loans are also eligible for tax | | | | preserve all receipts, contracts, and bills related to the |
| deductions. Viewing the IRA website will provide | | | | expenses. |
| relevant information. | | | | There are many avenues and when in doubt there are |
| 4. Insurance premiums paid to protect your goods, | | | | professionals who will study your business activities |
| transport, storage spaces, and office space and so on | | | | and suggest appropriate actions. If you are |
| are eligible for tax waivers. Find out whether | | | | knowledgeable you can reduce your business taxes |
| equipment and machinery insurance is also permissible. | | | | considerably. |