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Tax Tips, Tax Deductions, and a bigger tax refund from the IRS

Taxpectations | Your TaxJoy has Arrived! / Deductions  / Tax Tips, Tax Deductions, and a bigger tax refund from the IRS

Tax Tips, Tax Deductions, and a bigger tax refund from the IRS

Tax Tips, Tax Deductions, and a bigger tax refund from the IRS

We decided that there are so many good tax deductions out there that we should share a few of them with you so that you could add them to your tax returns and also in your tax preparation for the upcoming year.

So what if you decide to chuck it all and start your own think tank?  Then you are in for some great tax deductions whether it will be a home-based business or a brick and mortar store.

There are plenty of tax deductions and tax tips that you can use as a business owner.  For instance, your office supplies, such as the paper for the printer.  If you use a ream of paper every two weeks and you pay an average of say $3.99 a ream, take that and multiply by 26 purchases over the year and you get a $103.74 deduction.  Obviously you have other office supplies that you can add to this.  Dollar by dollar, it all adds up!

Don’t forget your office equipment like printers, computers, ipads, and other technological wonders that make your job easier to do.  You can often take 100% of the cost as a deduction.  However, you can also depreciate the equipment so you get a smaller deduction, spread out over just a few years.   The choice is dependent upon the total cost of the piece of equipment or furniture that you purchased.

If you have hung around me at all, you know that one of my favorites is, mileage ….  Have you tracked your mileage today???  A mileage tax deduction can be one of the largest that a service business can take at times.  For instance, say that you go to your clients site on a regular basis.  Let’s say that they are an average of 20 miles from your home or office.  Make that a round trip and it is 40 miles.  Maybe you visit them 2 times a week so that is 80 miles.  The IRS allows $.55 ½ cents a mile so … $44.40 a week over 52 weeks and you have a deduction of $2,308.80.  WOW …. That is only if you drive 80 miles a week for your business and many of us drive much more than that … again, it all adds up to some serious dollars.

If you are working from your home, it is very important to keep track of everything purchased and used for your business as well as, other indirect expenses such as alarm systems, utilities, internet expenses, and other household bills that contribute to your office use.  You can write off a portion of each of these which is dependent upon how much of your house is in use by your office.    For example, your house is 1000 square feet and your office space  is 250 square feet.  Then you are able to deduct 25% of all of your household bills towards your business use of your home.   (See other rules and policies about claiming business use of your home)

So … go out, start your own think tank, a home garden party service, or a small boutique.  Just keep track of all your expenses or better yet, call Taxpectations, and we will keep track of it all for you!

Smiles

 

 

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