Monetary gifts given to tax-exempt charitable organizations by your business may be tax deductible. For example, if you drive an hour to attend a business meeting with a client and then go to the grocery store on the way home, you would need to subtract the additional mileage to reach the store. If you handle personal and business matters during one trip, you can usually only count the mileage related to your stated purpose. However, you’ll need to keep detailed records of: ![]() If you use your personal car, mileage accrued for business expenses may also be tax deductible. You can normally deduct expenses related to the purchase and upkeep of company-owned vehicles from your taxes. In some cases, you can also claim depreciation on leased and rented equipment to further reduce your tax liability. You may also be able to take small business tax deductions on any money that you paid to rent or lease office equipment, office furniture, tools and machinery. Additional expenses paid to your landlord for property management, security and other services may also be deductible. This usually includes both your base rent and any common area maintenance (CAM) fees that you pay. If your business rents space, your rent payments may be tax deductible. Some things that contribute to the cost of goods include the following: Normally, this involves valuing your inventory at the beginning and end of the year and calculating the cost of goods sold. ![]() InventoryĬompanies that manufacture or buy products to sell may be able to deduct the cost of inventory. For example, you normally can’t deduct the cost of your primary telephone landline, but second lines used exclusively for business may be deductible. If you maintain a home office, there may be some restrictions on deducting utilities.
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