| In your first year of business, the IRS allows you to | | | | business only. |
| write off as much as $5000 in start-up expenses. If | | | | You can still get business deductions for entertainment. |
| that is not enough, you can spread additional start-up | | | | Contrary to the popular belief that the "three martini |
| costs over the next 15 years. | | | | lunch" is over, it is not really. The IRS definition of |
| You can deduct expenses for your employees' | | | | entertainment is pretty liberal. The expenses must |
| continued education if that education is relevant to your | | | | occur within a business context, such as a convention |
| current field of business. This does, however, eliminate | | | | or conference, and the entertainment must have taken |
| deductions for education costs if you are seeking to | | | | place immediately before or after the meeting. |
| have your employees trained in a new field, one into | | | | Otherwise, you can write off 50% of any |
| which your company has yet to expand. | | | | entertainment expenses for which you are not |
| Automobile expense deductions get technical and the | | | | reimbursed and 100% of those expenses if you |
| IRS keeps a close watch on these claims, but you can | | | | employ yourself. |
| get 44.5 cents per mile as a deduction for business | | | | When you are in business, the best advice is always |
| travel. The mileage allowance changes often, so be | | | | to have a tax professional do your taxes for you. |
| sure to check out the exact figure before claiming this | | | | Even more, you should hire an accountant or financial |
| deduction. The other automobile allowance is to track | | | | consultant to work with you all year long. There are |
| total expenses on gasoline, repairs, and maintenance. | | | | many tax decisions to be made in business that do not |
| You are going to want to keep very good records on | | | | wait until tax preparation time. |
| this deduction, as the IRS is known to flag businesses | | | | By putting a tax professional on retainer, you can |
| over automobile deductions. | | | | consult with them anytime a tax question arises in the |
| You can claim a deduction of up to $100,000 for | | | | course of doing business. This may, initially, seem like |
| business equipment. This claim can include computer | | | | an unnecessary expense, but consider the savings |
| software, office furniture, business machinery, and | | | | you will receive by having a tax pro working for you |
| automobiles. Just be sure that you can prove that the | | | | year around. In terms of dealing with payroll taxes |
| equipment is used at least 50% of the time for | | | | alone, you will get your money's worth. |