Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested in deductions. Following are a few that you may be entitled to claim.

Deductible Expenses

· Office expenses

· Rent or lease payments

· Advertising

· Costs of goods sold

· Insurance costs

· Utilities

· Payments to independent contractors [file form 1099]

· Accounting fees

· Legal fees

· Communication expenses

· Credit Card Interest for business charges

· Travel expenses

· Vehicle expenses

· Business-related meals and entertainment

· Uncollected receivables

· Bank fees on business accounts

· Interest payments on notes

· Excise and fuel taxes

· Employment taxes

· Real estate tax paid on business property

· Special local assessments for repairs or maintenance to business property

· Promotional costs that create goodwill such as sponsoring a youth team

· Business association dues

· Business-related magazines

· Casualty losses

· Beverage services

· Credit bureau fees

· Taxi fares

· Telephone calls made on trips

· Self-employment tax [if applicable]

Sales Tax Deduction Option

The American Jobs Creation Act of 2004 provides all taxpayers with the option to claim a deduction for state and local sales taxes instead of state and local income taxes. If you purchased a high cost item during 2004, you may find that the total sales tax you pay far exceeds your state income tax payment. If so, you should determine whether you should claim a larger deduction by using the IRS Optional State Sales Tax Tables found in IRS Publication 600.

The new sales tax deduction is a windfall for taxpayers in Alaska, Florida, Nevada, Texas, Washington, South Dakota and Wyoming. These states do not tax the income of their residents, which makes the sales tax deduction a very valuable deduction indeed! Regardless, taxpayers in all states should the possibility of claiming a sales tax deduction.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

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Rochester Democrat and Chronicle

Which local community pays the highest taxes? It might surprise you
Rochester Democrat and Chronicle
Small villages in Orleans County paid the highest effective property tax rate in the region, a report Monday found.
Which local community pays the highest taxes? It might surprise youThe Journal News | LoHud.com

all 2 news articles »

New York Times

Craft Distillers, Facing Lower Taxes, Invest in Themselves
New York Times
Small craft distillers across the country have been on a spending spree since the turn of the new year. St. George Spirits, in Alameda, Calif., recently invested in more efficient pumps, new lab equipment and an automated bottling line. House Spirits ...

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Tax Foundation

Seattle Proposes a New Tax on Jobs
Tax Foundation
It will be difficult for Seattle to top 2017 for the sheer number of new or higher taxes considered: a city income tax, foreign buyers' and luxury real estate taxes, soda taxes, short-term rental taxes, a higher parking tax, and a business head tax ...
Here's how Seattle's proposed tax on businesses to pay for homelessness services would workCHS Blog (blog)

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HuffPost

The new tax law gives rental property owners some breaks — and one important negative change
MarketWatch
As under prior law, you can still deduct mortgage interest and state and local real estate taxes on rental properties. While the TCJA imposes new limitations on deducting personal residence mortgage interest and state and local taxes (including ...
The Great Republican Tax Cut BackfireHuffPost

all 6 news articles »

CNNMoney

Social Security, Medicare and taxes are on the mind of Arizona's ...
CNNMoney
In Sun City, Arizona, tax reform, Social Security and Medicare are on the minds of a powerful bloc of senior voters ahead of the special election for the 8th congressional district Tuesday.
Arizona Votes Home PageArizona.Vote

all 38 news articles »

The Denver Post

Colorado Supreme Court upholds legality of taxes for special districts, like RTD
The Denver Post
The Colorado Supreme Court on Monday upheld the constitutionality of a state law that added sales taxes to some items to benefit public transportation and cultural groups in metropolitan Denver without voter approval. The ruling by the state's highest ...

and more »

Tax Foundation

Should Bottled Spring Water Be Subject to Severance, Extraction, or Excise Taxes?
Tax Foundation
At the end of February, a bill (HB 5656) was introduced in the Michigan House to subject spring water bottlers to an excise tax of 4 percent of the wholesale price of the water they bottled. This same time last year, a bill in Maine (HP 0356) proposed ...

and more »

ACLU (blog)

Will Immigration Authorities Use Our Taxes to Go After Immigrants?
ACLU (blog)
People across the country filed their tax returns last week, glitches and all. If historical patterns hold up, this year's taxpayers will include millions of undocumented immigrants. Federal law protects the confidentiality of tax information, but ...


Sacramento Bee

California initiative would make it harder to raise taxes | The ...
Sacramento Bee
All state and local taxes would need two-thirds approval under an initiative sponsored by the California Business Roundtable currently gathering signatures for the November 2018 election. The beverage industry is a major donor.
California's candidates for governor don't talk about taxes much ...Los Angeles Times
Will $12 billion tax bite drive rich from California? | CALmattersCALmatters

all 4 news articles »

USA TODAY

Online stores need to pay taxes, too: Readers on an Internet sales tax
USA TODAY
States need the income, and it's not fair that brick-and-mortar stores (which already bear the costs of huge overheads) should also be the only ones who must be less competitive because others do not charge sales tax. I think it's so wrong for a ...

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