Small Business Tax Deductions - The year is coming to an end. Do you know where your deductions are? Whether you work from home, the car or the beach, you have a lot of small business deductions you have earned!
I’ve talked a lot about the tax benefits of having a small business to protect your assets and to reduce your taxes. If you’re new to the idea of starting your own business, we should talk. But first, as part of any wealth building strategy, I recommend you do a little homework.
Here’s some good foundational information that the U.S. Gov supplies about starting a business. Follow the link at the end for more info.
Business Expenses
Small Business Expenses and Tax Deductions
Guidance for the Self-Employed and Sole Proprietors
There are two basic tax concepts new business owners need to add to their vocabulary: business expenses and capital expenses.
Business expenses are the cost of conducting a trade or business. These expenses are common costs of doing business, and are usually tax deductible if your business is for profit. For example, costs of renting a storefront, business travel, and paying employees are all deductible business expenses.
Capital expenses are the costs of purchasing specific assets, such as property or equipment, that usually have a life of a year or more and increase the quality and quantity of products and services. For example, if you own a landscaping business and you purchase mowers and excavating equipment, these costs are capital expenses and do not qualify as deductible business expenses. However, you can recover the money you spent on capital expenses through depreciation, amortization, or depletion. These recovery methods allow you to deduct part of your cost each year. In this way, you are able to recover your capital expenses over time.
Figuring business expenses vs. capital expenses is not always clear cut. Consider taking advantage of free tax training opportunities offered by the IRS. If you have hired an accountant, you should also seek his or her advice regarding tax deductions.
The following information provides a brief overview of expenses that quality as tax deductions, with links to resources that provide clear guidance on deducting and capitalizing your expenses... For more: http://www.business.gov/finance/taxes/business-income/tax-deductions.html
Have a prosperous day!
Gabby Huguenin
Wealth Coach
CEO Wealth Classes Coaching, LLC
www.WealthClassesCoaching.com
888-888-3612
Here's a free gift for you: Sign up for our free eight week Wealth Building Secrets program that you can take from home. No cost, no obligation. Just 8 weeks of wealth building tips, money making ideas, tax saving strategies and new ways of thinking about wealth, money, and prosperity. There’s no obligation and you can get start right now!
I’ve talked a lot about the tax benefits of having a small business to protect your assets and to reduce your taxes. If you’re new to the idea of starting your own business, we should talk. But first, as part of any wealth building strategy, I recommend you do a little homework.
Here’s some good foundational information that the U.S. Gov supplies about starting a business. Follow the link at the end for more info.
Business Expenses
Small Business Expenses and Tax Deductions
Guidance for the Self-Employed and Sole Proprietors
There are two basic tax concepts new business owners need to add to their vocabulary: business expenses and capital expenses.
Business expenses are the cost of conducting a trade or business. These expenses are common costs of doing business, and are usually tax deductible if your business is for profit. For example, costs of renting a storefront, business travel, and paying employees are all deductible business expenses.
Capital expenses are the costs of purchasing specific assets, such as property or equipment, that usually have a life of a year or more and increase the quality and quantity of products and services. For example, if you own a landscaping business and you purchase mowers and excavating equipment, these costs are capital expenses and do not qualify as deductible business expenses. However, you can recover the money you spent on capital expenses through depreciation, amortization, or depletion. These recovery methods allow you to deduct part of your cost each year. In this way, you are able to recover your capital expenses over time.
Figuring business expenses vs. capital expenses is not always clear cut. Consider taking advantage of free tax training opportunities offered by the IRS. If you have hired an accountant, you should also seek his or her advice regarding tax deductions.
The following information provides a brief overview of expenses that quality as tax deductions, with links to resources that provide clear guidance on deducting and capitalizing your expenses... For more: http://www.business.gov/finance/taxes/business-income/tax-deductions.html
Have a prosperous day!
Gabby Huguenin
Wealth Coach
CEO Wealth Classes Coaching, LLC
www.WealthClassesCoaching.com
888-888-3612
Here's a free gift for you: Sign up for our free eight week Wealth Building Secrets program that you can take from home. No cost, no obligation. Just 8 weeks of wealth building tips, money making ideas, tax saving strategies and new ways of thinking about wealth, money, and prosperity. There’s no obligation and you can get start right now!
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