Category: Tax Deductions
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How Tolls and Parking Tax Deductions Work
This post is part of my vehicle tax deductions tips. Read more, like earlier posts on car deductions here. As you probably know, there are two ways to deduct business auto expenses, the actual expense method and the standard mileage rate. The standard mileage rate for any business transportation (that isn’t commuting) is a matter Read more
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When an LLC is Taxed Like an S-Corp
If you’ve run your business as an LLC, you know that it is usually taxed as a sole proprietorship. You can, however, have it change to an S-Corp for better tax treatment. But should you? At what point does S-Corp status benefit your business? How to File for S-Corp Status Within the first two months Read more
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How to Classify Employees or Contractors
The biggest payroll mistake a business owner can make is misclassifying your workers. Typically, the mistake comes from when an employer classifies workers as contractors when they are actually employees. No problem if your workers are contractors, but make sure they actually are.The frustrating thing is that in many cases it’s not 100% clear; it’s Read more
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How to Rent Your Home for Business Events (The Augusta Rule)
Don’t run your business exclusively from your home, but would like to use your home as a deduction anyway? Business owners like you can rent your home to your business for events and deduct it as an expense. In previous posts we talked about deductions you could claim in your home based business, provided you Read more
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Home Office Deductions You Won’t Want to Miss
In the last post on home office deductions in the United States, we talked about how any area of your home you deduct must pass an exclusive use test, essentially meaning that you use that part of your home only for business. Read it if you want to know more about that. Here we will Read more
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Tax Rules of Hiring Your Kids In Your Business
You want to hire your children for your business, but you want to follow the tax rules for hiring your kids. Good on you. Here we’ll talk about how to do that. Children had summers off from school so they could help during summer months on the family farm. Urbanization, and mechanization of agriculture, reduced Read more
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Is it Really Possible to Deduct Gifts for Your Business?
Gifts as tax deductions: Can I get away with it and if so, how? We all love a cheerful giver. If you can deduct gifts for your business, however, you’ll be even more cheerful! Sometimes we’re grateful for a customer’s loyalty so we send them a Christmas card. Sometimes we’re building referral relationships so we Read more
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Deduct Business Loan Interest and Massively Lower Your Tax Bill
If you can deduct expenses related to the operation of your business, doesn’t it stand to reason that you could also deduct business loan interest? Yes. Fortunately, the IRS thinks so too. To qualify for these deductions, three things have to be true: Let’s look at the types of borrowing a business can make whose Read more
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4 Way to Depreciate an Asset for Unbelievable Tax Savings
There are different ways you can depreciate an asset. These methods can give you different results at different stages of the use of your business assets. Whichever method you use, be consistent and use the same method for the asset in question. Track the value, method of depreciation, and deductions on a table using excel Read more
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How to Take Deductions on Every Major Asset by Capitalization
Depending on your business, you may need to make some large expenses and deduct asset costs. How are those treated as deductions? In this post, you’ll learn how to ‘capitalize’ a deduction. Capitalizing is the main way to deduct the value of an asset. For instance, take a $10,000 truck for your lumber company. The Read more