Which business owner loves to be deducted a load of money by the government in the form of tax? This is usually a stressing time for most business owners. However over the years, business owners lose money for failing to notice some tax deductions and end up paying more money than they should. If you are among the aforementioned it is time you get enlightened.
So which are the overlooked tax deductions?
1. HOME OFFICE DEDUCTION
If you use a room in your house to meet and interact with clients, then you should be exempted and your tax reduced because you use your house as a guest area and office. There are two ways you can start deducting once you are qualified. You can use a simplified method or you can go the long way of counting all the expenses and deducting them based on the space the office takes.
2. STARTUP EXPENSES
These are the charges you encountered when beginning your business, for example, the fee for training employee, transportation among others. For these, you are not supposed to deduct the amount all at once you need to extend them for some years. However, you should make sure that you include all the costs in the year your business began and the previous day you opened. It is always wise to seek the best tax attorneys in Los Angeles for guidance.
3. AUTO EXPENSES
If you use your car for business, then you may deduct the charges you use up when running and retaining it.You can choose to either calculate the mileage per mile of which the car used when on business. You can also subtract the expenditures like gas, parking fees, insurance among others. So long as you do your calculations correctly you can also take the deduction even if you still use your car for personal reasons.
4. LOSSES DUE TO BAD ARREARS
In all business, there have to be those customers who owe you and you can’t bring it together over a period of time. You don’t have to worry because you can still deduct that expenses. In order for you to claim a deduction for that awful non performing loan you have to make sure it is incorporated in gross income.
5. TAX AND EDUCATIONAL EXPENDITURES
All that basic expense you paid your lawyers and accountants is deductible in the tax year you paid them. This is not all-encompassing of the fees paid to obtain business properties. You can also take away licenses regulatory charges and fees used in tax planning during the earlier year.
All in all, it is always best to consult with a professional as you never know if you might be …