Advertising - This includes running ads in newspapers, on television, radio, and so forth. Also included would be hiring someone to write a press release for you, or to design a flyer to be distributed in your neighborhood.
Accounting/Bookkeeping - If you decide to pay someone to keep your books for you, or hire a CPA to prepare your taxes, either would be deductible.
Auto - If you use your car for business, you can deduct the auto tax expenses amount set by the IRS for business travel - as of January 2006 that is 44.5 cents per mile. Even the cost of going to the office supply store is deductible.
Bank Service Charges - Any charges your bank assesses on business checking or savings accounts.
Business Cards & Stationery - Printing new business cards or having letterhead stationery and envelopes made are deductible costs.
Business Travel - If you go overnight for a convention or business trip, you may deduct all expenses related to the trip, including transportation, lodging, meals, laundry expenses, cleaning, fax or phone charges, tips, etc. If your trip combines business and pleasure, you can only deduct travel expenses if 50% or more of your trip is devoted to business.
Credit Cards - Annual credit cards fees for your business credit cards. You also can deduct interest payments on these cards.
Depreciation - On your business equipment or furniture.
Education - Education expense must maintain or improve skills required in your present employment, such as training conventions, courses, books, and other training materials.
Entertainment - If you are entertaining a client, customer or employee if it is directly related to your business or associated with your business you can claim a portion of your bill. Your records for this are critical and must contain a copy of the bill with the date, the amount, and the restaurant. You must also note the name(s) of those you entertained and how it related to your business.
Equipment - (Including computers).
First Year Expense Deduction - You can deduct a significant amount if you purchase business equipment such as computers, fax machines, copiers, phone systems, or other fixed assets used to open your new business.
Gifts - You can deduct gifts up to a certain value per person per year. So if you give out Christmas gifts to clients you may be able to deduct at least part of the cost.
Health Insurance - Self-employed people can deduct a percentage of their health insurance payments
Home Office Tax Expenses - If you have a separate room in your house that is ONLY used for the business, you can get a significant tax break. Be sure to separate your expenses into direct and indirect expenses. Direct expenses are fully deductible. Those are things like painting or decorating your office; cleaning services for the business portion of your home and insurance on business equipment. Indirect expenses are those that apply to your entire home. Calculate the square footage of your office as a percentage of the square footage of your whole home to calculate how much you can deduct from rent, mortgage, mortgage interest, insurance, utilities, repairs, and depreciation.
Internet and E-Mail Services - You can deduct your monthly bill for your online service providers (especially if you're using information pages to help you run your business).
Licenses or Fees - For your business
Local Travel - This includes taxi, train or bus fare related to conducting your business. Keep track of your local travel expense in your appointment book, and make sure to get and save receipts.
Office Furniture - Hand in hand with the home office tax expenses break; desks, chairs, lamps, filing cabinets, couches and plants in your waiting room can be included in your business expenses.
Office Supplies - Keep track of everything you spend on paper clips, legal pads, pens, toner cartridges, file folders and all other office supplies.
Parking - If you have to pay to park in the course of running your business, you can deduct garage parking fees, parking lot and meter charges.
Postage - Every postcard, letter, or package you send for your business counts as a little tax deduction. A great way to keep track of these purchases is to use a business credit card and buy your stamps over the phone from 1-800-STAMP-24 or online. If you don't wish to make two separate purchases, you can also use the category tracking software that's included in a Stamps.com membership.
Professional associations - You can deduct dues for joining a professional group, a trade association, your local chamber of commerce.
Professional publications - Magazines, newspapers, or newsletters related to operating your business, or which and help you stay abreast of news in your profession are deductible.
Rental Expenses - Yes, there is a rental expenses tax deduction. It can be claimed for rental of space, furniture or equipment
Retirement Plans - You can deduct contributions made to these plans, and their income is tax deferred.
Telephone You can claim your long distance expenses and possibly your local phone expenses, if your phone service (such as VOIP* - Voice Over Internet Protocol phone service) provides an itemized bill for proof of the calls you make for business. If you decide to get an incoming toll free phone number for your business its deductible too, as is the cost of putting a second phone line in your home to use strictly for business. Of course, if used for business, you can take advantage of the cell phone tax deduction.
Trade shows, conventions and seminars - If you're exhibiting your product or service at a trade show, or even just attending, the costs you incur can be legitimate business expenses.
Utilities - A percentage of your water, electricity, &/or gas bills, as described in Home Office Deduction above.
Wages paid to employees - In some cases these employees can even be your own children, under the category of family employee tax breaks |
