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Business tax deductions


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Common tax deductions for small businesses.

Published in: Business
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Business tax deductions

  1. 1. Wray Rives CPA CGMA See Wray to CYA
  2. 2. Business Tax Deductions ● Cost of Goods Sold o Materials, Components, Supplies related to tangible goods you sell ● Advertising o Marketing, Promotional items, gifts ● Auto and Vehicle Expense o Mileage or Actual Expense o Must track Mileage
  3. 3. Business Tax Deductions ● Commissions o Money you pay others to bring business to you ● Contract Labor/Outside Services o Be sure you issue 1099’s o Don’t call them employees ● Depreciation o Write off assets you use in the business o Sec 179 and Bonus Depreciation
  4. 4. Business Tax Deductions ● Payroll/Wages o Be sure you file W2’s and 941 Forms o Sole proprietors/Partners do not receive wages ● Interest Expense o Only for business financing ● Rental and Lease Payments ● Insurance o NOT Health Insurance
  5. 5. Business Tax Deductions ● Professional and Legal Services ● Office Expense and Supplies ● Repairs and Maintenance o For business assets ● Taxes and Licenses o Sales tax if you include it in revenue, property tax on business assets,
  6. 6. Business Tax Deductions ● Travel and Entertainment o Per Diem (limited for Sole Proprietors) o Catered events for customers/employees 100% Deduction ● Utilities for separate business location
  7. 7. Home Office Tax Deductions ● Area used EXCLUSIVELY for business ● Does not have to be a separate room ● Mortgage Interest, Property Taxes, Utilities, Repairs, Maid Service, Lawn Service, HOA Dues ● Depreciation-Impacts exclusion when you sell the home
  8. 8. Unique Business Tax Deductions 1. Breast implants for an exotic dancer. 2. Cost of beer given to customers of a convenience store. 3. Cost of cat food for a junk yard owner. 4. Body oil for a professional body builder. 5. A portion of the money paid to a live-in girlfriend