If you File a Schedule C for a Small Business you can qualify for many Tax Write-Offs.
First, you can depreciate property, known as an Asset. This can be items like office furniture, computers or any other general equipment used in your business.
You can do what is called a 179 Depreciation expense deduction. This allows you to write-off the entire cost or part of the Asset you are reporting. For example, if you purchased $14,000 in office furniture, you could write-off the entire amount under Section 179.
Further, if you rented or leased equipment you can also write that off. So, make sure that you are reporting all leased equipment and interest paid as well.
You can also write-off Real Estate and personal property taxes on business assets. For example, if you paid real estate taxes during the year and use part of your home as an office, you can write some of those taxes off. Additionally, if you use a vehicle as part of your normal course of business, you can deduct the annual registration taxes.
Most businesses are required to pay License and Regulatory Fees to state and or local governments and this normally can be written off on your taxes.
Make sure if you carry an inventory you are deducting the Cost of Goods Sold. You will need to keep good track of your inventory to accurately report this. Your records should show the exact beginning and ending inventory.
If you qualify you can also deduct the Business Use of Your Home. When doing this you will need to measure out the exact square footage of your total home and business office. The Home Office has to be used exclusively for business in order to qualify.
If you own a small business check out TurboTaxOnline to see what write-offs you might qualify for.
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