Business tax deductions
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This document lists various common business tax deductions and some unique examples. It discusses deductions for costs of goods sold, advertising, vehicle expenses, commissions, contract labor, depreciation, payroll/wages, interest expense, rent/lease payments, insurance, professional services, office expenses, repairs, taxes/licenses, travel, entertainment, utilities, and home offices. It also provides a few unusual examples of deductions claimed such as breast implants, beer, cat food, body oil, and money paid to a live-in girlfriend.
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Business tax deductions
- 1. Wray Rives CPA CGMA See Wray to CYA
- 2. Business Tax Deductions Cost of Goods Sold o Materials, Components, Supplies related to tangible goods you sell Advertising o Marketing, Promotional items, gifts Auto and Vehicle Expense o Mileage or Actual Expense o Must track Mileage
- 3. Business Tax Deductions Commissions o Money you pay others to bring business to you Contract Labor/Outside Services o Be sure you issue 1099s o Dont call them employees Depreciation o Write off assets you use in the business o Sec 179 and Bonus Depreciation
- 4. Business Tax Deductions Payroll/Wages o Be sure you file W2s and 941 Forms o Sole proprietors/Partners do not receive wages Interest Expense o Only for business financing Rental and Lease Payments Insurance o NOT Health Insurance
- 5. Business Tax Deductions Professional and Legal Services Office Expense and Supplies Repairs and Maintenance o For business assets Taxes and Licenses o Sales tax if you include it in revenue, property tax on business assets,
- 6. Business Tax Deductions Travel and Entertainment o Per Diem (limited for Sole Proprietors) o Catered events for customers/employees 100% Deduction Utilities for separate business location
- 7. Home Office Tax Deductions Area used EXCLUSIVELY for business Does not have to be a separate room Mortgage Interest, Property Taxes, Utilities, Repairs, Maid Service, Lawn Service, HOA Dues Depreciation-Impacts exclusion when you sell the home
- 8. Unique Business Tax Deductions 1. Breast implants for an exotic dancer. 2. Cost of beer given to customers of a convenience store. 3. Cost of cat food for a junk yard owner. 4. Body oil for a professional body builder. 5. A portion of the money paid to a live-in girlfriend