Upgrading To A New Set Off Office Furniture? Get A Deduction, Maybe
Posted by admin on Jun 28, 2008
It is often the case that needs, styles and function change in the workplace. If you have invested heavily in computers that are now outdated and you want to get something back from them, consider upgrading to a new computer, and filing it as a deduction.
Consider giving your old furniture, computers or other tangible items that are still useful away. Donations like this can help you to help someone else, but they may also qualify as tax write offs, too. In fact, many businesses are able to write off these costs as upgrading is required.
Be careful though. If you have already written off, or fully depreciated the cost of this furniture on previous returns, you will not be able to claim a deduction on it any longer. Talk to your tax professional about local areas that will qualify to provide this type of donated benefit to you.
Have To Move For Your Business?
Posted by admin on Jun 15, 2008
Many people today are moving from one place to the next for their employment, mainly because people have to be where the work is. Good thing that you can deduct some of these expenses as deductions. In most cases, this would have been a nondeductible cost, but if your employment requires the move, then you may be able to take advantage of a deduction.
In order to qualify, you will need to make certain the costs are acceptable. For example, the move has to be because your employment. What’s more, your new workplace must be at least 50 miles from where your old one is located.
Both employees and business owners can get this deduction, but you do not report it as a small business expense. Rather, there is a line on Form 1040 that you will use. Be sure to keep a record of all of the costs you are adding here to the move.
The Top 10 Deductions Your Business Should Be Taking
Posted by admin on Jun 11, 2008
Are you unsure that you are getting all of the small business deductions that you should be getting? If so, then consider what the top ten deductions for small business are and find out if you are applying for them.
First, the most overlooked is that of car deductions such as traveling to business meetings and other business related activities. Next, office expenses should be noted. This includes everything from your office furniture to the utilities that it takes to keep it running. Business travel is another consideration. Remember that you get 100 percent deduction for your travel and accommodations and another 50 percent on your meals. Meals and entertainment are just as important there. Depreciation, rent for equipment and tools, and supplies are also deductions you may miss.
The others include legal and professional services, insurance and business start up costs.
Using Your Child In Your Business? Write It Off
Posted by admin on Jun 10, 2008
There are several ways to benefit from employing your child in your business. First, in order for this to happen, you must be a sole proprietor or be in a partnership where you and your spouse are the only partners. Then, if you hire and employ your children for you, you can deduct their salary as a business expense. Those under that age of 17 do not file for Social Security, giving you even more of a benefit. If you have a corporation, though, the corporation is employing them, not you and therefore this means the corporation is not relieved of these tax liabilities.
To take this even further, have them contribute to a Roth IRA which will allow a nice tax deduction from their salary and will provide a benefit to them later in life. Of course, you must set this up legitimately.
Having Trouble With Business Calls As Deductions From Home?
Posted by admin on Jun 4, 2008
It can be difficult for anyone to keep track of the costs of telephone conversations especially in this day and age of cell phones. Yet, those that receive calls at their home regarding business, especially if you have your home office there, can easily deduct these costs as business expenses at tax time. But, how will you keep track of it all?
One simple way to do this is to look over your phone bill when it arrives, circle any and all business calls on it, and then keep that bill. At the end of the year, use all 12 of the year’s bills to tally up the amounts. Then, apply this to your business deductions. You get 100 percent deduction on these business expenses. Keep it simply by storing all of your tax related records together throughout the year.