83 Items You May Be Able to Deduct From Your Taxes - Flexible Business Funding
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83 Items You May Be Able to Deduct From Your Taxes

Posted on: June 24, 2017 | Category: Fund Your Business·Taxes

Living is expensive. Everyone can feel it in their daily living. Expenses are increasing and inflating, may it be into business or personal expenses. Wherever you are, it seems like money is flowing out like water. It is unstoppable. Anyway, it is really impossible to put a stop on it. In terms of tax paying, if you know the tax deductible then it can cut down your expenses tremendously.

These are often not known by the public. They are not aware that there are things that can be write-off on your list of taxable items. If you are a business owner then it would be beneficial for you if you know these things since it can save you much.

Good record keeping of expenses is the key to be proficient in business. Know which of your items have a legitimate business purpose. What does it mean then? It simply implies that if a particular item has a business purpose, then it can be deducted from the list.

There are items that are considered as tax deductibles. Some of them still vary with the situation. These situations should be clear and concise in order not to confuse it with other related tax principles. Some of the deductions might only be applicable to only a percentage of the expense itself.

The arbiter for the tax code is the IRS. They are ones deciding is a deduction is allowed or not. It is defined that an expense can be deducted if it wall under the classification of ordinary and necessary. The problem is how to determine if an item is ordinary.

Fees on Accounting

If the fees are necessary, then it can be considered as deductible. These transactions must be absolutely vital to run the operation of the company. However, sheltering of income is considered as a violation and would even cause the taxpayer to be penalized.

Advertising and Promotion

In small business, advertising and promotion is already the lifeblood of a business. This means that it is necessary to the survival of the business itself. They can be tax write-offs as well if they are proven to be legitimate.

If the business is under sole proprietorship, you can deduct it from your list of taxable items. The scope of promotion has also a certain area for qualification. If you need to take a client for a lunch meeting, this is already considered as business related. Giving of freebies for your client is also a part of promotions. The costs of these items are non-taxable since the purpose is to promote the business.

Seminars are often given by sponsoring companies. This is a tested way of advertising and promoting the services and products of a particular company. Together with it, brochures and flyers may be printed and be deducted to the list of taxes.

Tax on Amortization of Intangibles

This is the process of making the cost of intangible assets as expenses over the projected life duration of an asset. Those tangible assets are transferred to the expenditures through the process of depreciation.

Amortization of the intangible asset can be done for tax purposes like tax deductions. The amortization amount would be diminished from the tax and be prorated.

Vehicle Expenses

Little did you know that your automobile expenses can be tax deductibles? How can you do it then? If a vehicle is being used for business purposes then it is qualifies. You need to produce proof though that you are really using it for business purposes by recording your odometer and keep it for filing.

The total mileage should be provided as well. The figures are so important. You can deduct the costs of gasoline, technical repairs, and the maintenance as well if the cause if purely business. If your strategy is to depreciate your vehicle, make sure you have all your documentation on hand.

Debts

These are the non-business bad debts. You cannot collect them anymore so they are considered as bad debts. This is a situation where in someone owed you money and you cannot collect it anymore. It is a common scenario in a business setting. This is actually harder to be taken out of the list compared with the business bad debts.

For example, you lend a certain amount to a person for the investment. You will get 20% of the profit if the business goes well. This is considered as an investment and not a debt in business.

Fees in Banks

Taxpayers who are regular wage earners would not be able to take off a bank account cost on their taxes. On the other hand, you are classified as self-employed or under limited liability, then; you can deduct the cost on your tax.

If you are qualifies to deduct bank fees means that you can deduct almost all bank fees that should be sued to maintain your business operations. It includes the card fees, maintenance fees, and other overdraft fees and charges.

Meetings

In order for board meetings to be deducted, it must be purely related with the business. There are expenses of course when the board hold a meeting. The attendees are usually the board of directors and it is inevitable that they would spend for it since it is usually done in a regular monthly basis.

Board meetings are held for the board of directors. The meeting is intended to evaluate the growth of the company as well as the financial status of the business. The policies and company objectives are reviewed and discussed. Most importantly, the annual budget is being tackled upon for approval.

The meeting is considered as ordinary and necessary that is why it is tax deductible. Keeping a record of the expenses of the meeting would be essential in deducting it from the tax. The IRS becomes lenient if all the documents can be provided.

Repairs and Building Maintenance

These are generally can be deducted to the taxes. Maintenance and repairs of the machines and equipment are generally qualified to be part of the write-offs in tax. Replacing of certain items that are not that expensive can also be accepted.

If the items and equipment and other assets can be depreciated, then it’s even betters since they are most qualified.

Membership and Subscriptions

If you are a small business owner, you need to pay to certain organizations. It can include medical associations, professional associations, and other related associations.

Other types of subscriptions though are not deductible to your taxes unless specified by IRS.

Business Travel Expense

Business travel is also included to the list of tax deductibles especially when you can justify that the sole reason is for business use. The ticket costs as well as the accommodation are not taxable since it should be classified as necessary for the business.

Be sure to keep all the documents for the travel including receipts of every meal and hotel accommodations for audit purposes. You can travel by plane, bus, or even a ship without being taxed if you know how to write it off the list.

Other Deductibles

Other deductibles include health insurances, charity deductions, janitorial services, and collections, outside parties, computer and technology, consultations, continuing education program, trade shows and events, credit cards fees, depreciating assets, customer discounts, training package for employees, wages, equipment and machineries, repairs and maintenance, exhibits, franchising charges, family wages, furniture, insurances for group, home-based offices, interests, internet usage, fees on investments, losses, management, supplies and materials.

These items are generally accepted to be deducted in your tax if they qualify and levied by the IRS. Other items are the moving expenses, and other medical expenses. The expenses for the office are also acceptable. Parking fees and pension plans, including postages are also for write offs too.

Some companies hold contests and competitions and the prizes are not subjected to taxes. Research and the costs are necessary and would therefore not be included in the taxable items. If an employee is subjected for retirement, these plans are also not taxable. Online services are also qualifies.

Summarizing everything, many items may be deducted from your tax list and it would save you much money to be allocated in more important expenditures. You can always ask an expert or professional what are the items that can qualify. Of course, those items must meet the requirements so that you would not be subjected for an interrogation with the auditor.

The IRS has set specific guidelines on determining if the expenses are taxable or not. Be familiar with these guidelines in order to avoid unforeseen problems and flaws. Always be updated with their new policies and schedules. Those policies are subjected to change from time to time. Don’t miss out the new announcements.

There are a lot of things that you can maximize even in paying your taxes. All you need to do is to follow the steps and the guidelines and you’re all set. It is always advisable to seek the help of a professional when in doubt. They can give you pieces of advice on how to efficiently and effectively handle your taxes and it is worth your time.

References

https://www.entrepreneur.com/article/219474

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