Many
businesses owners do not take all the tax
deductions they can - costing
them money is taxes. Most business owners over
pay their business taxes
1. Home Office Expense - you can usually
deduct space for your office (especially
inventory storage) including utility, mortgage
interest, insurance, phone, ISP
2. Mileage - 36 cents a mile for business
miles. Plan wisely! Do business errands every
time you are doing other driving. Give out
coupon packs on every trip.
3. Hire your children - You can pay up to
$4400 per child (over age 7) for doing
business chores for you, and it is not taxable
for them if they have no other income.
4. Equipment - new rule last year lets you do
a straight write off on $24,000 equipment,
computers, furniture in the year purchased
even if financed.
5. Medical Expenses - 100% write off for small
business owners. Most miss this. Set it up as
an employee benefit for you, your spouse, and
your children that work for you.
6. All cost of business - printing, postage,
office supplies, advertising, education,
books, resources, ISP, web page cost, etc.
Be sure to keep records:
who, what, where, when, why in your day timer
IRS wants to see you pursue profit. Look like
a business. Have a business
license. Advertise. Have business cards. Use
your business name. Get a
separate business checking account and credit
card.
Make sure you write off everything you can
this year and keep more income
for your family!
