Tax Article - Overlooked Business Tax Deductions
Many business taxpayers fail to deduct otherwise eligible business expenses or fail to fully deduct qualifying business expenses. As a result, millions of dollars are overpaid to the Internal Revenue Service every year. Below is a listing of commonly missed deductions or deductions that you may not be fully utilizing. You may wish to carefully examine your records to determine if you may be missing any of these deductions.
Home Office Deduction
If you use part of you home as a home office, you may be entitled to deduct expenses related to the home office based on the percentage of square footage the home office occupies. Related expenses include mortgage interest, property taxes, utilities, and repairs, etc.
General Business Expenses
If you use your personal funds for business expenses such as office supplies, these are qualifying business expenses, which you may deduct.
Imputed Interest on Shareholder Loans
If you have loaned money to your business, you are required to charge interest on the loan or interest will be imputed to you. While you are required to report the interest as income on your personal return, your business is permitted a deduction for the interest paid. If any of the interest amount is improperly characterized as wage income to you, your business may be overstating its employment tax liability. By re-characterizing these amounts as interest expense, your business may be able to reduce its employment taxes and possibly obtain a refund.
Meals and Entertainment Expenses
If you have used your personal funds to pay for meals and entertainment expenses, these expenses qualify as a business deduction, subject to limitations.
Personal Assets Converted to Business Use
If you have contributed personal assets, such as a computer, the fair market value of these assets qualify as a business deduction, subject to depreciation limitations, beginning with the date of conversion.
Self-Employed Health Insurance
As a self-employed taxpayer, you may deduct 100 percent of your health insurance premiums.
Communications Expenses
Expenses related to the business use of your personal telephones, cellular phones, and internet connections may be deducted.
Automobile Expenses
Mileage and other related automobile expenses may be deducted when your personal vehicle is used for business purposes.
If after examining your records you feel that you have missed some qualifying business deductions or if you have any questions about your business deductions or whether certain expenses qualify as business deductions, please contact us to discuss.
Find out how our tax expertise can add value to your business. Email us or call us at 1 (888) 875-9770.
related links
International Tax Services
Newsletters and Articles
Wealth Management
Track your Refund
Tax Rates
Tax Tools and Calculators
Resources
|
