12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

The Best Tax Deductions for Your Small Business in Zip Code 17302

The Best Tax Deductions for Your Small Business in Zip Code 17302


Since FDR's New Deal, corporations and wealthy families have been non-stop finding new ways to get tax breaks, deregulation and entitlements from the government.
 
- Adam McKay


Legitimate tax deductions can significantly lower your taxes at the end of the business year.

Expenses of Operating a Business

Starting a business involves expenses on utilities, office supplies, repairs and advertising. This can be deducted as current business expenses as long as you already open your doors for business. Business cost can be deducted as capital expenses. You can deduct $5,000 in your first year of business and the remainder can be deducted in equal amounts during the next 15 years.

Bookkeeping, Legal and Professional

Fully deductible as part of a cost of doing business are the business books and those that help you do business without legal and tax professionals. It can also include the fees paid to lawyers, tax professionals, or consultants as long as it is deducted in the year incurred.

Auto Expenses

If you own the vehicle you use for business, you can deduct the cost of operation, maintenance and depreciation of this vehicle to make it road worthy. The rules can be tricky to master but it will be worth your while to know how it is done. There are two available methods of claiming auto expenses:

• Actual expense method•. Keeping track and deduct all the actual expenses.

• Standard mileage rate method. Keeping track of each mile driven plus all the business-related tolls and parking fees.

If the car you use for business is new (purchased in the tax year), the actual expenses method can provide a large deduction during the tax season. If using an actual expense method, you should also include the depreciation in the deduction for the vehicle. You cannot claimed accelerated depreciation deductions in prior years or use the Section 179 deduction for the vehicle.

If you only have one car and are use for both business and pleasure, only the business part will be qualified for a tax deduction. Careful tracking of business use is a must. IRS will not let you get away in claiming a 100% business related use.


Bad Debt

Bad debts because somebody stiffs your business may or may not be deductible depending on the products you sell.

• Goods. You can deduct the cost of goods that you sell but weren't paid for.

• Services. Business that provides services cannot deduct the losses as part of tax deduction.

Business Entertaining

Fifty percent of the cost for entertaining a present or prospective customer can be claimed for deduction if:

• The event is business related and business is discuss like a catered meeting in the office

• The entertainment takes place before or after a business discussion

Make sure to indicate on the receipt the specific business purpose.

Travel

Traveling for business can include the cost of the plane, cost of operating the car, lodging, meals, shipping business materials, phones calls, faxes, tips, taxis and other expenses related to your travel. If you combine business with pleasure, it is okay as long as business is still the primary purpose of the trip.

Interest

If you use your own personal credit card to finance business-related expenses, the interest incurred is tax-deductible. It can also be applied to personal loans where the proceeds is use for business. Just make sure you keep a record that the money was use for business.

New Equipment

Small businesses can write off the full cost of the new assets in the year they buy them, than deducting their cost over the years by capitalizing them.

Moving Expenses

Moving related to business or job can be tax deducted as moving cost. The workplace must be at least 50 miles farther from your old workplace.

Software

Software bought for business must have a depreciating period of 36 months with some important exceptions:

• Computer software placed in service from January 1, 2003 through December 31, 2013 is eligible for a Section 179 deduction, which means that 100% of the cost of software can be deducted in the year purchased.

• When software comes with a computer, and its cost is not separately stated, it's treated as part of the hardware and is depreciated over five years. However, under Section 179, you can write off a whole computer system (including bundled software) in the first year if the total cost is within the Section 179 annual deduction amount.


Charitable Contributions

Your business can make a charitable contribution and pass through the deduction through you as long as the type of business you have is a Partnership, LLC's, or an S corporation. If you own a C corporation the corporation can deduct the charitable contributions.

Taxes

Depending on the type of tax, taxes that incurred in operating the business are generally deductible.

• Sales tax on items you buy for your business's day-to-day operations is deductible as part of the cost of the items; it's not deducted separately. Excise and fuel taxes are separately deductible expenses.

• If your business pays employment taxes, the employer's share is deductible as a business expense.

• Federal income tax paid on business income is never deductible. State income tax can be deducted on your federal return as an itemized deduction, not as a business expense.

• Real estate tax on property used for business is deductible, along with any special local assessments for repairs or maintenance.

Educational Expenses

Educational expenses can be deducted as long as they are related to your occupation or business. The expense must be to improve skills required in your present employment.

Advertising and Promotion

Business cards, yellow page ad, and other advertising are deductible as current expenses. Promotional costs are also deductible as long as there is a clear connection between the business and the sponsorship.

Additional List of Overlooked Business Expenses that can be Routinely Deducted

• promotion and publicity

• seminars and trade shows

• taxi and bus fare

• telephone calls away from the business

• business gifts

• business-related magazines and books

• casual labor and tips

• casualty and theft losses

• coffee and beverage service

• commissions

• office supplies

• online computer services related to business

• parking and meters

• petty cash funds

• postage

• consultant fees

• audiotapes and videotapes related to business skills

• bank service charges

• business association dues

• credit bureau fees

Keep track of the small items that matters like a receipt that can be use to deduct your expenses.

 
Personalize & Print a Free PA Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Zip Code 17302
Harad Greenberg & Love
1500 John F Kennedy Blvd Ste 1850
Philadelphia, PA 19102
(215) 561-9999
Criminal Law Attorneys, Attorneys
Himmelstein Louis B
1420 Walnut St # 1000
Philadelphia, PA 19102
(215) 790-9996
Attorneys,  Accident & Property Damage Attorneys,  Civil Litigation & Trial Law Attorneys,  Legal Se
A Carey Co
124 S Maple Way
Ambler, PA 19002
(215) 654-9988
Attorneys, Legal Service Plans
Kansky Law Offices
19 Darling St.
Wilkes Barre, PA 18702
(570) 824-9949
Personal Injury Law Attorneys, Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys
Three Rivers
534 Lincoln Ave
Bellevue, PA 15202
(412) 734-9900
Saturday-Sunday By Appointment, Evening By Appointment
Radmore James R
1500 John F Kennedy Blvd # 312
Philadelphia, PA 19102
(215) 568-9900
General Practice Attorneys, Attorneys
Fenice Mark S
1101 N Front St
Harrisburg, PA 17102
(717) 909-9797
Attorneys, Legal Service Plans
Hoof Bobby
1420 Walnut St # 808
Philadelphia, PA 19102
(215) 893-9770
General Practice Attorneys, Attorneys
Ferry Law Firm
300 Laird St
Wilkes Barre, PA 18702
(570) 822-9731
General Practice Attorneys, Attorneys, Legal Service Plans
Hendrazak Bernard J
33 Laurel Run Rd
Bear Creek Township, PA 18702
(570) 472-9726
Attorneys, Legal Service Plans
Solt John
1425 Hamilton St
Allentown, PA 18102
(610) 433-9717
Attorneys, Legal Service Plans, Bankruptcy Law Attorneys
Bobbe Richard T III
1515 Market St Ste 1020
Philadelphia, PA 19102
(215) 704-9717
General Practice Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
Edward Blumstein & Assoc
1528 Walnut St # 1100
Philadelphia, PA 19102
(215) 790-9666
Attorneys,  Mediation Services,  Arbitration Services,  General Practice Attorneys,  Legal Service P
Silvers & Langsma PC
2 Penn Center Plz
Philadelphia, PA 19102
(215) 563-9660
Accident & Property Damage Attorneys,  Attorneys,  Malpractice Law Attorneys,  Personal Injury Law A
Hetznecker Paul J
1420 Walnut St # 911
Philadelphia, PA 19102
(215) 893-9640
Attorneys, Criminal Law Attorneys, Commercial Law Attorneys, Discrimination & Civil Rights Law Attor
Richard A. Jaffe
TWO Penn Center, Suite 1922 1500 John F. Kennedy Boulevard
Philadelphia, PA 19102
(215) 496-9607
Attorneys,  Employee Benefits & Worker Compensation Attorneys,  Labor & Employment Law Attorneys,  S
Morris Law Firm
1515 Market Street, Suite 1520
Philadelphia, PA 19102
(215) 557-9605
Accident & Property Damage Attorneys, Civil Litigation & Trial Law Attorneys, Litigation & Tort Atto
Goldsman Susan E ESQ
1500 Walnut St Ste 700
Philadelphia, PA 19102
(215) 496-9546
Lisa M. Lassoff, Esq.
1500 Market St Ste 3500E
Philadelphia, PA 19102
(877) 864-9525
Estate Planning Attorneys, Probate Law Attorneys, Estate Planning, Probate, & Living Trusts, Wills,
Jaffe Daniel M
1500 Walnut St Ste 1920
Philadelphia, PA 19102
(215) 546-9500
Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Legal Service Pla
Rotfeld Bruce M PC
1500 Walnut St Ste 2000
Philadelphia, PA 19102
(215) 569-9490
Attorneys,  Accident & Property Damage Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  
Scarpello & LaTour, PC
1515 Market St Suite 1020
Philadelphia, PA 19102
(267) 507-9489
Criminal Law Attorneys,  Drug Charges Attorneys,  Attorneys,  Sex Offense Attorneys,  Discrimination
Dibernardo Lisa M
150 E Chestnut St
Lancaster, PA 17602
(717) 397-9444
General Practice Attorneys, Legal Service Plans, Attorneys
Alan Michael Ross Law Offices
2001 N Front St
Harrisburg, PA 17102
(717) 686-9406
Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys,  Legal Service Plans,  Litigatio
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US