Small Business Tax Deductions As a small business owner, you know that taxes are one of, if not your biggest and most formidable expense. This includes income taxes, payroll taxes, sales taxes and property taxes. Below are some thoughts on how you can make use of small business deductions. Economic Stimulus Package Breakdown First, be sure to prioritize the deductions you take for their tax value. For example, if you have significant physical capital, owning or more businesses, the largest deduction your business may have could be depreciation. If that’s the case, you probably already know how important it is to choose the best depreciation schedules for your business. Literally, this can save you thousands of dollars every year based on how you choose to allocate depreciation. Other significant deductions for nearly every small business include vehicle expenses, office expenses, Section 179 deductions for business equipment, interest expense, and obviously payroll costs. Economic Stimulus Bill Details Second, recognize that every one of these deductions has a corresponding cost representing a need the business has to cover. As you go about tax planning, one easy mistake to make is to let the tax tail wag the business dog. A better way [...]
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