What Expenses Are Tax Deductible?

What else besides New Years resolutions do you have to work on early in the year?  Probably getting all of your taxes together for last year so your accountant can work his or her magic, right?  Since most accountants don’t supply the numbers, and you do, how do you know if you are providing them with all the deductions you’re entitled to?

Here are a couple of considerations that make a big difference in how things are captured:

• Are you a sole proprietor?
• Or do you run your business as a corporation?
• Are you still working a j.o.b. collecting a paycheck, while you start a new business?
• How do you obtain clients and do you ever entertain them?
• I could list another dozen or so, but you get the idea here.  Thinking through all of your business situations and expenses could save you big money!

Let me stop for a moment and tell you, I am not a tax consultant, nor do I pretend to be, but I have access to some of the best in the industry.  Here are a couple of their tips:

• Taxes cost more than food, clothing, and lodging combined.  It is in your best interest to find a way to minimize your tax liabilities (legally of course).
• Having your own business is one of the ways you can probably reduce your taxes if your expenses are ordinary, reasonable and necessary.
• Keep a proper documentation system.  If you didn’t do this last year, start for this year. Keep a log or a diary of all appointments; the time, place, and with whom it took place, any expense, what was discussed, and keep your receipts.
• Keep all of your business expenses separate from your personal expenses – do not comingle them.
• Use a business credit card – you can deduct the interest and annual fees on cards used only for business.
• If you entertain clients, you can deduct many of these expenses, but not all…..so be clear on what you can do.

There are many other items to be aware of as well.  If you’d like to know of the others, feel free to contact me.

Until next time,  J.
“Take control of your destiny or someone else will”

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January 04 2010 12:49 am | HowTo Business Questions, Misc Ranting, Wealth Strategies

3 Responses to “What Expenses Are Tax Deductible?”

1. What Expenses Are Tax Deductible? | TheAbundantAllianceBlog IM Consultant Says:
   January 5th, 2010 at 4:01 am

   [...] more here:  What Expenses Are Tax Deductible? | TheAbundantAllianceBlog By admin | category: tax consultant | tags: are-reluctant, current, even-though, industry, [...]

2. Carroll B. Merriman Says:
   January 5th, 2010 at 9:45 pm

   What a wonderful blog! Please continue this great work I will be sure to check back regularly…

3. virna@tax Says:
   February 26th, 2010 at 12:58 am

   I enjoyed reading your blog. It too is very helpful. Thanks you for sharing.

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