The Roni Deutch Tax Center submitted another quest blog to be published on the Franchise Business Review blog. The new entry explains the 7 most popular business tax deductions. I have included a segment of the article below, but you can find the full story at FranchiseBusinessReview.com.
1. Startup Expenses
IRS rules allow you to deduct up to $5,000 of your expenses in starting a business. These expenses are known as capital expenses and you can deduct them during the first year you are in business. If your total startup costs exceed $5,000 then the remaining amount must be deducted over the next fifteen years.
2. Auto Expenses
If you use a vehicle for business purposes then you can deduct some of the associated costs. The specific rules around auto expenses are tricky to understand but basically you can either track and deduct all the business related expenses, or take the standard mileage rate.
3. Education or Learning Materials
Any costs associated with business related education can be deducted. This includes both payments made for self-improvement for you and your employees. Night classes, seminars, conferences and even books are great examples of learning expenses.
4. Advertising, Promotions & Publicity
Small business owners usually remember to write off the costs of paid advertisements. However, do not forget that you can deduct any costs related to promoting your business. These expenses vary widely from business cards, printing flyers, etc.