Deduct This – Make sure you don’t miss out on valuable business expense deductions. The complexity of the tax code comes, in part from the fact that Congress appreciates that business taxation offers more than just revenue. There are a number of expenses that you might be entitled to deduct. Make sure you take advantage of all that applies to your business. Common deductions include: salaries, tax and license fees, legal fees and professional expenses, accounting, interest on business debt, advertising, rent, utilities, stationary, charitable contributions, internet and e-mail services, along with postage and bank fees.
Keep Track – It pays, literally, to keep good records. The IRS requires that your books show gross income, as well as deductions and credits. Therefore maintain a detailed and organized record of your business transactions with supporting documentation. Maintaining a daily log of your expenses is ideal since it cuts down on the time you may have to spend sorting through your receipts and organizing your expenses.
Follow these basic record-keeping tips:
- Deposit all business monies in a separate account.
- Avoid writing “cash” checks.
- Carefully record transactions you make with your business.
For more information visit www.IRS.gov
State Government Links
• New York
|• North Dakota