With the Fiscal Cliff debate raging in Washington, taxes are on every business owner’s mind. In my eBook, Six Keys to Maximizing Wealth For Small Business Owners, there is an entire section that focuses on taxes. You may download a free copy at the previous link.
Over the next couple of weeks I’ll share a dozen deductions you can use for your small business. This will be a three-part article that will help you take every legal deduction you can.
Here are a few that often get forgotten:
1. Your home office. If you keep an office in your home that you use primarily for business purposes you can deduct it. It isn’t limited to a full room. You may also deduct a percentage of the square footage. That percentage would also include things like the mortgage, insurance, utilities, etc.
2. Office Supplies. Any supplies that you need to run your business are deductible. Rule number one….keep those dang receipts! These expenses will help offset your taxable business income. If you have trouble keeping track, use a service like Expensify or Shoeboxed. I have started to use Shoeboxed and love stuffing everything in an envelope without a second thought!
3. Your furniture. If you use a desk or file cabinets you can deduct these. Purchases of office furniture can be a 100% deduction in the year of the purchase or you can deduct a portion of the expense over seven years (depreciation).
4. Other stuff. Don’t forget about that new iPad you bought for your business, or the computer, copier, fax machine or even the scanner are all tax-deductible. You can take a 100% deduction for the year you bought it or depreciate over 5 years.
Well, that’s all the free ideas you get this week! Next week I’ll cover four more deductions that get forgotten. If you would like any help with maximizing wealth for your business, write me at firstname.lastname@example.org, or call me at (859) 225-2596.