| There are so many great tax deductions available for | | | | charges - I use my cell phone exclusively for business |
| small businesses and of course it's hard to know them | | | | so that the purchase price of the phone and the |
| all when you first start a business. I know I missed | | | | monthly charges are deductible.f) Business coaching - |
| many deductions on my first couple of tax returns. | | | | take advantage of this deduction and invest in yourself |
| Do some research when you are starting your pet | | | | by getting the help of a coach who can help you grow |
| business and make sure you keep records of all your | | | | your business faster.g) Fees for advertising your |
| business expenses in a file. | | | | business in the yellow pages, in online directories, |
| Many of your everyday expenses become tax | | | | running print ads in magazines or newspapers, or |
| deductible when you own a home business. Depending | | | | sending postcards or direct mail.h) Printing charges for |
| on the structure of your business these deductions | | | | producing copies of business forms and contracts as |
| can apply against your business and your personal | | | | well as your business cards and fliers.i) Business |
| income. | | | | website design and monthly website hosting charges. |
| Some examples of deductions that I will be claiming | | | | The purchase cost of large items such as computers, |
| this year include:a) The Home-office deduction - you | | | | printers, and fax machines can be depreciated over |
| can claim a percentage of your home expenses if | | | | several years so keep receipts in your tax file as well |
| part of your home is used regularly as an office for | | | | as your warranty files. |
| business use. These expenses may include | | | | If you run your business as a sole proprietor or |
| maintenance and repairs (that are not capital in nature), | | | | partnership the IRS allows a new business owner to |
| rent, mortgage interest, house or apartment insurance, | | | | claim business losses against their personal income for |
| power, heat, water, and property taxes.b) Vehicle | | | | 3 years. Make sure that after 3 years you do show |
| expenses for business purposes. If you use your car | | | | some profit as otherwise they may label your business |
| 50 percent for business purposes, 50 percent of your | | | | a "hobby" and this means you may be liable for past |
| car mileage, maintenance and repairs, vehicle | | | | claimed expenses. |
| insurance, gas and oil, car washes, license and | | | | A good book to give you some tips is Home Business |
| registration, and auto club can be claimed. You will | | | | Tax Deductions: Keep What You Earnby Stephen |
| need to keep a mileage log book to track and | | | | Fishman and Diana Fitzpatrick which is available at |
| substantiate your business miles.c) Office expenses | | | | Amazon. |
| such as internet access, office supplies, books, and | | | | I would also recommend talking upfront to your |
| association memberships.d) Travel to and fees for pet | | | | accountant about the best structure for your business |
| industry expos and conferences. All you hotel room | | | | to make sure you keep more of your money at tax |
| charges, meals, and taxi fares are deductions.e) Phone | | | | time. |