Blog & Company News

Jan 13, 2012

7 Top Tax Deductions for Small Businesses

[caption id="attachment_393" align="alignright" width="425" caption="tax tips"][/caption] 1. Auto Expenses As a small-business owner, you can deduct some of your automobile expenses. You may be able to expense the cost of a vehicle if you use it for your business. You should always keep track of all your business-related automobile use. You also may be able to deduct a certain amount for mileage. You may also deduct for tolls and parking costs. 2. Entertainment Expenses You may deduct for entertaining clients and prospective business contacts. You may do so as long as business is discussed during the event. The most common entertainment expense occurs when taking business contacts out for meals. 3. Travel Expenses If you travel a lot for work, you’re in luck! You can deduct some of your travel expenses. These expenses include: airfare, car or taxi usage, lodging, meals, calls, and faxes. 4. Charitable Donations In some instances, depending on the type of company, you may be able to deduct for charitable donations. If your company is a partnership, S corporation, or limited liability company, you can deduct for cash donations. 5. Advertising and Marketing Expenses Advertising and marketing costs directly related to your business may be deductible. Some of these may include business cards, promotional activities, and radio, television, or print ads. 6. Software Deductions You can deduct software purchases for your small business if you purchase and use the new software within the same year. 7. Equipment Expenses Small-business owners often have a good amount of equipment, so deducting equipment expenses is key. Some equipment that you may be able to deduct includes: personal computers, laptops, and office furniture. As a small-business owner, you should consult in-house or outside consultants as well as the tax code to get more information on what is or isn’t tax deductible. This article originally appeared on Forbes.com. You may also be interested in: 1. "Taxes and Your Home-Based Business: Consider These Tips" 2. "Six Smart Tax Tips for New Business Owners" 3. "Do You Have Employees With Disabilities? You May Qualify for Tax Benefits"