|
|
Small Business Tax Deductions - Top 5 |
By:
Mike Singh |
|
|
With tax season just around the corner it is never too early to
start thinking about available tax deductions. Small business
tax deductions are important to ensuring that you are getting
all the return that is possible. Some tax deductions for small
businesses are:
* Office furniture * Office equipment and supplies * Software
and other subscriptions * Insurance premiums * Retirement
contributions
In addition to these deductions there are a few other deductions
that should be kept in mind while filing. Simply keeping good
records throughout the year will help with these items and will
make calculations at tax time less stressful.
Social Security
If you are self-employed or a small business you have to pay
double the social security as you pay as both the employer and
the employee. The good news is that you can claim back half on
your 1040.
Home Office
If you have a room in your house that is used exclusively for
your small business it may be used as a deduction. The room
cannot be used for any other purposes to qualify. You can claim
a percentage of rent or mortgage and utility bills based on the
square footage of your office area in relationship to the square
footage of the house.
Mileage
Keep a journal in your vehicle of all small business related
travel and expenses. At the end of the year this can be claimed
one of two ways. It can either be deducted as a straight
calculation of mileage times the allocated rate plus other
expenses or it can be completed as a percentage of the total
mileage on the vehicle plus expenses.
Travel and Gifts
Hotel stays, travel on airlines or other forms of transportation
and gifts are all deductible. Saving receipts is critical to be
able to calculate this at tax time.
Children working for you
If you are the sole proprietor of your small business and you
employ your own child under 17 that child can make up to $4,850
and avoid paying any taxes. You will not have to pay Social
Security tax and you can write the salary off as a business
expense. This same policy applies if you and your spouse are in
partnership together and there are no other partners. It does
not apply if you are a corporation.
|
|
Article Source: http://www.friendsofvista.org/articles/article29637.html |
|
|
|
|
|
