Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business tax deductions

482 views

Published on

Common tax deductions for small businesses.

Published in: Business
  • Be the first to comment

  • Be the first to like this

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

×