Are you taking all of the business expense deductions you are entitled to? Many business do not take full advantage of the following:
- Personal assets used in your businessAssets purchased prior to starting the business, but now used in the business should be transferred and depreciated at their current fair market value.
- Newspapers and magazinesDo you purchase these as a personal expense? If they related to your business, they are business expense.
- More than auto mileage expensesDo you keep a mileage log to capture all of the business use of your personal vehicle used for business trips (to the office supply store, post office, etc.)? Do you add parking expenses and a percentage of the interest if you have a loan on the vehicle?
- Street clothing as advertisingStreet clothing is not deductible, unless you have it embroidered with you company name (and log), then it becomes an advertising expense.
- Advertising rather than donationIf a non-profit organization asks for a donation, even if you write a business check, it is a personal expense. But if you take an ad instead, it is an advertising expense.
- Meals 100% deductibleNot all meals are only 50% deductible. Do you know the three exceptions and have you set up an account to tract these meals at are 100% deductible?
- Product samplesIf you gave away product samples, you need to move these items from inventory into advertising.
- Retirement PlanHave you set up a retirement plan in your business?
- Sec 105 Medical PlanIf your spouse is your only employee, you can set up a legal plan to deduct the insurance and out of pocket medical expenses in your business.
To learn more about these, call us at 763-691-8585