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Tax Deductions as a Roadmap to Success

Tax Deductions as a Roadmap to Success

A recent trip to the accountant got me thinking about business tax deductions, and how they could become a roadmap to success. I mean, in theory, the IRS allows you to deduct the types of business expenses that are typical costs of doing business, and if they’re typical costs of doing business, they probably got to be that way because they work. So, on the Schedule C we’ve got:

– Advertising
– Supplies
– Taxes and licenses
– Travel, meals, and entertainment:
– Car and truck expenses
– Travel
– Commissions and fees
– Depletion
– Deductible meals and entertainment
– Depreciation and section 179 expense deduction
– Employee benefit programs
– Utilities
– Insurance (other than health)
– Wages (fewer employment credits)
– Interest: Mortgage (paid to banks, etc.)
– Other expenses
– Legal and professional services
– Office expense
– Pension and profit-sharing plans
– Rent or lease: Vehicles, machinery, and equipment
– Rent or lease: Other business property

There’s no way some of those would apply to me (I don’t have any employees, for example) but there are others on there that might be good to consider in the future. Such as renting business property: maybe if I had a separate location for one of my businesses, it might attract more customers. My accountant pointed out that I spend a whole lot less on business-related meals than most people do. I agreed, and then I thought, hm, maybe I should make an effort to wine and dine people who could help my business out. More customers through the power of referrals, you know. At any rate, it was fun to leave the accountants excited about all the possibilities.

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