Bookmark This Page

HomeHome SitemapSitemap Contact usContacts

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested in deductions. Following are a few that you may be entitled to claim.

Deductible Expenses

Office expenses

Rent or lease payments

Advertising

Costs of goods sold

Insurance costs

Utilities

Payments to independent contractors [file form 1099]

Accounting fees

Legal fees

Communication expenses

Credit Card Interest for business charges

Travel expenses

Vehicle expenses

Business-related meals and entertainment

Uncollected receivables

Bank fees on business accounts

Interest payments on notes

Excise and fuel taxes

Employment taxes

Real estate tax paid on business property

Special local assessments for repairs or maintenance to business property

Promotional costs that create goodwill such as sponsoring a youth team

Business association dues

Business-related magazines

Casualty losses

Beverage services

Credit bureau fees

Taxi fares

Telephone calls made on trips

Self-employment tax [if applicable]

Sales Tax Deduction Option

The American Jobs Creation Act of 2004 provides all taxpayers with the option to claim a deduction for state and local sales taxes instead of state and local income taxes. If you purchased a high cost item during 2004, you may find that the total sales tax you pay far exceeds your state income tax payment. If so, you should determine whether you should claim a larger deduction by using the IRS Optional State Sales Tax Tables found in IRS Publication 600.

The new sales tax deduction is a windfall for taxpayers in Alaska, Florida, Nevada, Texas, Washington, South Dakota and Wyoming. These states do not tax the income of their residents, which makes the sales tax deduction a very valuable deduction indeed! Regardless, taxpayers in all states should the possibility of claiming a sales tax deduction.

Richard A. Chapo is with http://www.businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit http://www.businesstaxrecovery.com/articles to read more business tax articles.

Article Source: http://EzineArticles.com/?expert=Richard_Chapo