Income Tax Deductions For Small Business Owners

Are you a owner of a business? If so you have plenty of expenses that you incur over the course of the year

. From employee retirement contributions, to overhead costs there are many expenses that will have to run your business. Are you making sure that all of the expenses that you incur are deducted in your tax returns? The cost of running your business isn't cheap and you can only continue to stay in business if you are profitable. The federal government has many income tax deductions for the small business owner.

Equipment

Did you purchase new equipment in the past year that is essential for your business? If so then you should be able to deduct the cost of this equipment. This will help to defray some of the cost of doing business. This will also allow you to reinvest the necessary tools that your company needs to stay competitive.

Property

Do you own the land and or building(s) that your company is located? If so you can use depreciation to write off the cost of the overhead. Though you cannot deduct the entire amount of your building. You will be able to eliminate a significant portion that will minimize the expense.

Employees

Your business has grown to the point that you must hire additonal workers. That is great. You are paying the employer portion for all the people that work at your company. This is an added expense which you can deduct on your tax returns when filed each year. The federal government wants to support those businesses that generate jobs. This is one of the ways that it does that.

Charitable contributions

This is one of those deductions that many business owners fail to use. If you are supporting worthwhile causes in your community or elsewhere this is a tax deduction that you should take. Not only are you supporting others, but you are giving back to causes that need help that might not be able to get it by other means.

Accounting services

Did you realize that as a business owner the expense incurred for having an accounting service prepare you tax returns can offset some of your profits? Not only will you get a professional to make sure that all of the latest rules and procedures are followed for the IRS, but you even get to write off the expense of their services as well.

Small business owners are the lifeline of the American economy. They create jobs which help to spark the economy and pump vital resources back into the areas and communities in which they are located. As a benefit or thank you for creating these jobs income tax deductions are generated to owners of these businesses. If you are a sole proprietor and are thinking about changing business types you will find many advantages . One of these are the increased deductions that you will be able to now take. If you are sitting on the fence go ahead and take the plunge. You'll be happy you did.

by: Gen Wright

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