I Don’t Have A Receipt For My Expense
Posted by admin on Jul 28, 2008
Far too many small businesses fail to write off enough of their business deductions because they do not have a receipt for it. For example, in the course of your day, you may have paid for a bus ride across town to meet with a potential client. Then, you went to a seminar or trade show regarding your business and you may even have had a cup of coffee at your office shop. Each of these costs is deductible even if you do not have a receipt.
When you make purchases that do not require a receipt to be handed to you, do one of two things. First, ask for a receipt whenever possible. When this is not possible, use your planner or date book to make simple notes in it, telling the date, location, amount and reason for the purchase. This can serve as your receipt for your business expenses.
Around The Office Deductions
Posted by admin on Jul 21, 2008
Most businesses miss a handful of donations that are quite common. Just take a look around your office and you may find some that are considered write offs. On your desk, you may notice your bank statement for your business. Take a look at it. Those fees on there are able to be written off as a business expense. Do you provide internet service for your business? If it is used solely for your business, online computer services are deductible, too.
There is a stack of bills and mail to go out. Did you write down the cost of postage as a business expense? Do you provide your visitors with books and magazines to read while they wait for you? Those too are business expense deductions. Do you have to pay for parking for your vehicle or parking meters outside? Yes, those too are deductions.
Sponsor A Local Little League Team And Write It Off
Posted by admin on Jul 15, 2008
Did you know that many of the costs of advertising your business are tax deductible? There are hundreds of ways to advertise of course, so does that mean that you can deduct just about anything and get the tax benefit from it?
Be careful here. In order for something to be considered a tax write off towards your business income, it must be directly related or benefiting to your business. So, if that little league team comes in wanting you to sponsor them, consider it. If they will allow you to add your business name to their jerseys go for it because this is considered a method of advertising and therefore is fully deductible.
There are many other situations in which this same scenario can play out. The key is to make sure that the cost is directly related to your business in some manner.
Can Taxes Be Deducted?
Posted by admin on Jul 4, 2008
In many cases, the taxes that you pay on your business are generally deductible. But, not all taxes are deducted in the same way. For example, sales tax on the items that you buy for day to day operations are deductible because they are part of the cost of the item. But, you cannot deduct them separately. If you purchase something large that needs to be depreciated over time, then the cost of the tax is added to the cost of the car and depreciated along with the car’s cost.
If you pay federal income tax on business income, this is not deductible, ever. Your state income tax may be deducted from your federal tax return, but only as an itemized deduction. This cannot be done as a business expense. Do take the time to know tax laws regarding deductions of taxes themselves. They can be complex.