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Most known tax deductions

These are some of the most known and popular tax deductions there are out there.

1. Auto Expenses

If you are a small business owner, then you are able to deduct some of your automobile expenses. You may also be able to expense the cost of a vehicle if you were then to use it for your business. You should always keep track of all your business related automobile use for your own benefit. You also may be able to deduct a certain amount for mileage if you get lucky. You may also deduct for tolls and parking costs.

2. Entertainment Expenses

You may deduct for entertaining clients and prospective business contacts or going out for cocktails all for the clients benefit. You may do so as long as business is discussed during the event and it is business related in any sense. The most common entertainment expense occurs when taking business contacts out for meals drinks and parties.

3. Expenses

If you are one who would travel a lot for work, you are one lucky nut. You can deduct some of your travel expenses as well.These expenses include things like airfare, car or taxi usage, lodging, meals, calls and faxes. If i were you, i would go to those travels expos now.

4. Charitable Donations

In some cases, depending on the type of company, you may be able to deduct for charitable donations and gifts to charity. If your company is a Partnership, S-Corporation, or Limited Liability Company you can deduct for cash donations. This would benefit you in any case that your company does charity events for those charities and orgs.

5. Advertising and Marketing Expenses

When in Advertising and marketing, the costs directly related to your business may be deductible. Some of these may include business cards, radio, television or print ads and promotional activities. Anything that would have to do with a form of advertisement would be deductible.

6. Software Deduction

You can deduct software purchases for your small business if you purchase and use the new software within the same year for your business of course.

7. Equipment Expenses

Lastly, smaller business owners would then often have a good amount of equipment, which would mean that deducting equipment expenses is key. Some equipment that you may be able to deduct include things like 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 is not tax deductible. Especially your financial advisers.

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