New Business Tax Deductions
Most new businesses start out small and hopefully grow into bigger businesses. You have to be an excellent record keeper and if you’re not then, hire someone else to do it for you because keeping records of business expenses is vital to maintaining a business.
Not only do you have to have documentation for your expenses, you will want to keep accurate records of all money that goes out and comes in.
Keep Your Business Receipts
Business deductions are self employed taxpayers’ friend if you have kept all of your receipts. If you should ever come under the scrutiny of an audit you will have proof of your legitimate business expenses.
New Business Tax Deductions
You may be wondering what’s happening in the business arena for tax deductions. Well, we have several changes concerning business tax deductions and here I have listed a few for you.
· $230 per month tax free parking for employees
· $230 per month tax free transit passes for employees
· Equipment placed in service is $250,000
· Annual investment limit is $800,000 (Act quickly big drop for 2010)
· Standard mileage rate is 55 cents per business mile
What can I deduct as a Business Expense?
The list is very long when it comes to listing business tax deductions. The most important advice I can give you besides keeping your receipts is to make sure it’s truly a business deduction.
According to the IRS, “To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.” This definition should clear up what is a true business expense and what is not.
Questions about New Business Tax Deductions
If you have questions about business tax deductions you can read the publication provided by the IRS which is Publication 334 Tax Guide for Small Business. There are ELEVEN other publications concerning business deductions! My question is, “Who has the time?” If you are self employed and are probably managing a lot of roles within your business, you most likely have a full plate already.
Help for Business Owners
Wouldn’t it be nice to get some help with your business tax deductions? I have good news for you. Would you like to be guaranteed to have the biggest refund possible or least tax owed? Would you like tax software to search your tax return for over 350 deductions?
Would you like your tax return to be gone over with a fine tooth comb to search for common audit triggers? If you answered yes to any of these questions then, you should use TurboTax Online. Check out the web site today to see what you’ve been missing!
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