Archive for business tax deductions

Owning a small business provides an advantage during tax time.  There are several tax breaks available for small businesses but it is a matter of knowing these deductions and business tax credits before filing out your business tax return.

Professional Fees

The majority of professional fees are deductible from taxes depending on the timing of services.  This includes attorneys, tax accountants and consultants.  It works in the following manner:  If you hire an attorney in December 2009 and services are completed within the same year as the bill statement, then you may write the expense as a business tax deduction.   On the other hand, if you receive a bill for 2009 and the services handled will not occur until 2011, then you cannot file for a business deduction.   Remember to keep track of professional fees.

Promotional and Sponsorship Opportunities

A clear scenario enabling tax deductions is claiming title sponsorship for an event, program and/or sporting event.  An event and/or team named after your business results in visible evidence of a promotional effort upon your behalf.   A concise connection is created allowing the tax deductions to be listed.  You must do your research to discover how much subtraction is permitted.

Charitable Contributions

Certain charitable contributions do qualify as a tax break.  You must investigate to ensure it is eligible though.  For example, if you donate office equipment to a school, it may be suitable as a deduction.   However, if the items are fully depreciated, you cannot claim it as a deduction.

There are also automobile, travel and moving expenses available for tax deductions.  Just be thorough in your search.  Explore your small business options.  You may qualify for an additional amount than initially conceived.

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Categories : Small Business, Taxes
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