In our previous post, we discussed some of the deductions that are available to small businesses. Here, we’ve listed even more deductions that should not be overlooked by business owners. Don’t miss out on these advantageous tax deductions!
Home Office Deduction : almost all business owners are allowed to deduct costs for qualifying newly acquired equipment and computer software and fees charged to the business account including ATM fees and credit card fees. Also, the space used in the home for the home office and the percentage of internet and phone used in running the business.
Interest : if you use credit to finance business purchases, the interest and carrying charges are fully tax-deductible.
Investment and Other Professional Fees : fees that you pay to lawyers, tax professionals or consultants generally can be deducted in the year incurred unless the work clearly relates to future years then they must be deducted over the life of the benefit you get from the work.
Software Depreciation : generally, software bought for business use must be depreciated over a 36-month period. When software comes with a computer, and its cost is not separately stated, it’s treated as part of the hardware and is depreciated over 5 years. (You are allowed, under Section 179, to write off a whole computer system including the bundled software in the first year if the total cost is less than Section 179 limits above.)
Travel : you can deduct for expenses such as plane fare, taxis, lodgings, meals, etc when you travel for business.
Please remember that this list is not intended to be all-inclusive. If we can help answer any of your questions, please contact our office.
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