Small Biz Tip: Taxes: Deductions

Tips from March 8, 2010

The Small Business tips today discuss tax deductions for small businesses.

  1. Business Travel – Deduct your transportation, accommodations, and business-related expenses from your taxes. Combining business and pleasure? Only deduct costs that are business related as long as more than half of your trip is dedicated towards work.
  2. Equipment – Need new machines, equipment, or other necessary supplies to keep your business running? Deduct these necessities from your business taxes.
  3. Rent – Keeping your business under a roof comes at a cost. Deduct your cost for rent to lower your taxable income.
  4. Salaries – What you pay your employees is a necessary expense for your business. Keep records of your employee salaries, and changes throughout the year, and deduct these expenses.

Daily Overview: “Ordinary and necessary” expenses for your business can be deducted from your revenue to reduce your taxable income. Stay organized throughout the year.