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:

10 Last-Minute Moves To Make To Save On Taxes In 2018  ForbesFor most of the year, the Internal Revenue *Service* (IRS) has been advising taxpayers to consider a tax withholding check-up to make sure there are no surprises ...
Income Tax Return (ITR) filing: This State Bank of India scheme helps you save on taxes; gives 7.35 pct int...  Zee BusinessIncome Tax Return (ITR) filing: The State Bank of India also offers an investment tool that allows you to claim an exemption in tax. The investment attracts an ...
This falling market offers an opportunity to cut your taxes in retirement  CNBCRecent market declines don't have to be all bad news for investors: They may provide you an opportunity to cut your taxes in retirement. The Dow Jones ...
Airtel Niger faces shutdown over non-payment of taxes  Business TodayThe General Tax Directorate of Niger ordered the closure of the offices of Airtel Niger, seeking tax amounts that have been disputed by Airtel.
Tax on your gold and real estate investments  LivemintHere is a look at the taxes that apply to short-term and long-term gains from these two asset classes.
EDMC proposes two new taxes, education cess in 2019-20 budget  Times of IndiaNew Delhi, Dec 10 () Cash-strapped East Delhi Municipal Corporation (EDMC) on Monday proposed two new taxes and an education cess in its budget for ...
Climate change: Protecting the poor from green taxes  BBC NewsAs President Macron caved into the yellow vest fuel tax protests, President Trump was triumphant. The French humiliation showed people rejected the sort of ...
EDMC proposes 2 new taxes and an education cess in its 2019-20 budget  Business TodayEDMC Commissioner Puneet Kumar Goel made the announcement of new taxes while presenting the budget at the civic agency's Patparganj headquarters.
What's the most value for money way to tackle obesity? Increase taxes on alcohol  The Conversation AUIt may not be popular, but an increase in the cost of alcohol would make us drink less and consume fewer kilojoules.
Net direct taxes collections up 14.7 percent in April-November  BusinessLineRefunds worth Rs 1.23 lakh crore have been issued in the eight months of the current fiscal.
Hired a nanny this year? Claim this tax credit for 2018  CNBCAs you prepare your tax documents for the end of the year, remember to get right with your nanny. That's because if you're paying her under the table, you won't ...
Illegal Tax Moves to Avoid  U.S News & World Report MoneyIt may seem like a harmless fib, but lying on your taxes can result in fees, interest and penalties.
Withdrawals Under National Pension Scheme To Be Tax-Free  BloombergQuintWithdrawals made by subscribers of the National Pension Scheme at the time of retirement will be made tax free.
Philly home values are rising. Will taxes keep rising with them?  Philly.comOther cities and states cap annual property tax increases. As Philly market values rise, are caps possible here?
Govt says no scope for corporate tax cut in near future  LivemintEuropean Union and the US cutting corporate tax rates not sufficient to sway India, says CBDT.
Kansas, Missouri have high taxes on cell phones, report says  The Wichita EagleKansas, Missouri and Nebraska all ranked high in a report tracking tax rates on wireless *service*.
Taxpayers Alert! Have you filed your income tax? Remember these deadline nears; know from TDS, TCS to chall...  Zee BusinessAlthough one would not like to share their income and income from other sources with authorities, however, it comes as a helping hand for government in ...
Taxmen catch buffalo meat, slap Rs 25 lakh in taxes, penalty  Economic TimesThe Commercial Taxes department officials in Belagavi have collected Rs 25 lakh in GST levies as well as penalty after intercepting four trucks mounted with ...
Beware! These tax-saving investment mistakes can sink your finances  The Financial ExpressIt's said, if you fail to plan, it means you plan to fail. So, it's better to plan before you make your tax-saving investments, so that you may reach your financial goal ...
7 year-end tax tips to boost your refund  CNBCThe new tax law has put a whole new spin on year-end tax planning, though it hasn't eliminated the need to do it altogether. "The tricks we had in our back ...
Opinion: California PUC may approve tax on text messages – srsly  The Mercury NewsIt's not quite a lump of coal, but California regulators may dampen holiday spirits early this year by approving a controversial tax on text messaging.
6 last-minute tips that will trim your 2018 tax bill  CNBCBefore you break out the Champagne, take a look at these six strategies that could help you trim your 2018 tax bill — as long as you act before Dec. 31.
No tax on up to Rs 50,000 interest for senior citizens  Times of IndiaIndia Business News: In a notification issued on December 6, it has clarified that no TDS has to be deducted under section 194-A of the Income Tax (I-T) Act in ...
Property taxes are going up in Lynn - Itemlive  Daily ItemWith no discussion, the Lynn City Council voted unanimously on Tuesday night to set the lowest residential tax rate at $14.30 per $1,000 home assessment.
India's tryst with taxes  Forbes IndiaWhile the rich pay a bulk of the income tax paid by individuals in India, many wealthy people do not pay their share of taxes.
Investing solely to avoid taxes is a bad, wasteful strategy: View  Economic TimesWhile many opt for creative accounting of expenses and tax deductibles, these practices also needlessly complicate matters for inheritors.
Climate change policy, carbon taxes aren't winners: Matt Canavan  The Australian Financial Review"We can respectfully disagree about policy approaches. But our consistent and long-held position is such taxes are not sustainable," says Matt Canavan.
West Monroe Board of Aldermen pass both sales and hotel occupancy taxes  Knoe.comTwo new taxes passed Tuesday night in West Monroe. The West Monroe Board of Aldermen voted unanimously on the measure.
Tunisian parliament approves budget without new taxes  The StandardTunisia's parliament approved a 2019 budget imposing no new taxes on individuals and easing the burden on some sectors after years of tax hikes.
The Golden Age of Rich People Not Paying Their Taxes  The AtlanticAn eight-year campaign to slash the IRS's budget has left the agency understaffed, hamstrung, and operating with archaic equipment. The result: a ...
Good jump! Corporate tax collection up 18 per cent in April-November, fastest in five years  The Financial ExpressCorporate tax collection grew an impressive 18.3% in April-November of FY19, the fastest pace in at least the last five years.
French lesson for Modi: Don't raise fuel tax  Economic TimesRIOTERS IN PARIS Last weekend, demonstrators turned Paris's wealthiest neighbourhoods into a battle zone to make themselves heard. Until Saturday ...
French Riots Really Aren't About Global Warming — They're About Tax Heavy Socialism  Investor's Business DailyNoisy demonstrations in Paris and other European aren't merely about global warming. They're about the growing tax burden they face and the EU's socialism.
How to save tax on capital gains arising from selling a house  Economic TimesMy 71-year-old father had purchased a house in 1972 for Rs 1,000. Now he is planning to sell it for Rs 28 lakh. What will be his capital gains tax liability?
How Much In Taxes Will I Owe When Selling My Home?  ForbesWill you owe capital gains taxes when selling your primary residence? Is selling a home tax free? We walk you through what you need to know before selling a ...
Divorcees can save on taxes — if they take this one step  CNBCIf you're planning on shedding weight in 2019 — in the form of your soon-to-be ex — be sure you understand this tax-planning benefit. Why the "head of ...
Want to pay less in taxes? Here are last-minute tax tips for 2018  NJ.comAS the year comes to a close, make sure you know what changes to expect under the new tax plan - before it's too late.
Leaving an IRA to a loved one? How to avoid a tax bomb  CNBCYou wouldn't trust your toddler with a pile of cash, right? Well, this estate-planning technique may allow you to safely pass your IRA on to future generations — if ...
Central govt staff can now save tax via NPS with only 3-year lock-in  Economic TimesSubstantially reducing the lock in for availing section 80C tax benefit on NPS investment the government has brought it on par with one of the most popular tax ...
Yankton residents vote to raise taxes to fund new pool  Miami HeraldResidents of Yankton have approved raising property taxes to help pay for a $15 million aquatic center.
Tax treatment of NPS set to change  LivemintCompulsory annuity and tax treatment made NPS a less preferred option by the financial advisors.
What Are the 2019 Tax Brackets?  Motley FoolHere's a look at the tax brackets for 2019 and what they could mean to you.
Income Tax Raids Old Delhi's Private Vaults, Seizes Rs 5.5 Crore Cash  NDTV NewsThe department's surveillance has been high in Chandni Chowk after cash worth Rs 35 crore was seized in currency notes of Rs 2000 from a private vault last ...
Editorial: N.C. has greater needs than more corporate tax cuts  WRAL.comWednesday, Dec. 12, 2018 -- Given North Carolina's needs, not to mention the additional costs tied to hurricane and snowstorm recovery, the General Assembly ...
Mazzotti's Smoke 'n Mirrors – a matter of taxes, frau...  Daily MaverickSelf-confessed cigarette smuggler and EFF benefactor Adriano Mazzotti has admitted to also donating “hundreds of thousands of rand” to the ANC.
No, The Deficit Isn't 'Soaring,' But Tax Revenues Are At Record Highs  Investor's Business DailyIn the first two months of the new fiscal year, tax revenues are up. But so is the deficit. Why? Because spending continues to outpace revenues. So why do tax ...
UBS report: Many Americans should expect bigger tax refunds in 2019  Business InsiderThe new GOP tax law went into effect at the start of 2018, and a UBS analysis suggests it could have a big impact on federal tax refund checks.
In early win for party’s left, House Democrats back off tax rule  Washington PostHouse Democrats have backed off a proposed rule that would have made it more difficult for them to raise taxes and pass their most ambitious goals, an early ...
How State Taxes Could Affect Where Bryce Harper and Manny Machado End Up  Sports IllustratedContract value can fluctuate substantially depending on the state. How might that affect the negotiations for Harper and Machado?
More Property Tax, Health Plans Part Of Proposed Delhi Civic Body Budget  NDTV NewsHike in property tax, levying of professional and betterment taxes, and plans for a health scheme on the lines of Ayushman Bharat for Class IV employees were ...
Vancouver council considers 2019 budget with 4.9 per cent property tax increase  Vancouver SunVancouver's new mayor and council, considering proposed $1.5 billion operating budget for 2019, heard from dozens of speakers Tuesday.
Going Through Divorce? Start These 3 Steps Today To Save On Taxes  ForbesThe Tax Cut and Jobs Act eliminated the alimony deduction for divorces after 2018. The new law will mean less money for expenses of the two household.
Pay Your Taxes In Bitcoin, Trigger Tax Losses On Price Drop Too  ForbesWith Bitcoin and other crypto prices down again, many holders don't want to sell. But if you owe taxes, how about paying them in Bitcoin? Selling now may ...
Mayor Rahm Emanuel pushes state gas tax increase to fund major transportation bill  Chicago TribuneMayor Rahm Emanuel on Tuesday called for a 20 to 30 cent per gallon increase in the state's gas tax to fund a major statewide transportation bill.
Brady releases revised version of year-end tax package | TheHill  The HillHouse Ways and Means Committee Chairman Kevin Brady (R-Texas) on Monday released a revised version of his year-end tax package, a move aimed at ...
Exclusive: Govt may levy another tax on fossil fuel cars, SUVs to drive electric vehicle growth  Moneycontrol.comThis move will help cut the direct subsidy given by the government on purchase of fully electric and hybrid vehicles.
Govt sends notices to big landlords for tax evasion  The Express Tribune75% landlords gave false statements in annual returns as they did not pay tax.
How senior citizens can avail tax break on interest income under Sec 80TTB  Economic TimesBudget 2018 introduced a new section, 80TTB, under the Income Tax Act which allows senior citizens to claim tax break on specified interest income up to Rs ...
ETWIW: Multicap funds, financial planning errors, and efficient tax planning in Kolkata  Economic TimesDo multicap mutual fund schemes make more sense after the recent re-categorisation exercise by Sebi?
Adams County to raise taxes to cover deficit  WGEMIf you live in Adams County, you will soon pay more in property taxes to help cover a county shortfall.
The Tax Cuts And Jobs Act: 3 Changes You Should Know  ForbesTax season is coming more quickly than you might think — has the Tax Cuts and Jobs Act affected you? Read here to discover more!
Paris Is Burning Over Climate Change Taxes -- Is America Next?  ForbesThe bottom line is this: economic freedom—the kind you get with a large middle class—leads to prosperity, economic growth, and technological innovation.
Income Tax panel won’t cut rates; but don’t lose heart, here’s what it will do for taxpayers  The Financial ExpressThe task force was set up by the finance ministry in November last. Arbind Modi was made the convenor of the panel and he retired on September 30.
Japanese Regulator Aims to Reduce Crypto Tax to Revitalize the Market  CCNIn October, Japan hinted its plans to ease the process of taxing crypto investments to refrain from impractical policies affecting the local market.
'Taxes, Taxes and Taxes': Tax-Burdened Protestors Reach Tipping Point in Socialist France  CBN NewsThe French are used to high taxes, but it was a new carbon tax that finally pushed French taxpayers to the tipping point, and ignited the worst protests in 50 ...
Gatineau runs a deficit to shrink property tax hike  CBC.caResidents in Gatineau can expect their lowest property tax increase in six years in the 2019 budget passed on Tuesday. The budget includes a 2.1 per cent ...
"Positive Impact Of Notesban": High Growth Rate Highlight Of Tax Report  NDTVThe Income Tax Department has mopped up over half the kitty of the targeted direct tax revenue for this fiscal -- at more than Rs 6.63 lakh crore -- riding at a ...
Denmark’s Tax Agency Targets 2,700 Nationals for Hiding Bitcoin Trades  CCNSkattestyrelsen (SKAT), the Danish tax agency, has accelerated crackdown against a large number of nationals who secretly traded bitcoin on a Finnish crypto ...
Pakistan government to impose 'sin tax' on tobacco  Economic TimesISLAMABAD: Pakistan will soon impose a 'sin tax' on cigarettes and sugary beverages and that fund would be diverted to the health budget, Minister for National ...
France’s protesters are part of a global backlash against climate-change taxes  Washington PostThe single most effective weapon in the fight against climate change is the tax code — imposing costs on those who emit greenhouse gases, economists say.
Study pushes for Scottish land and property tax reform  Financial TimesThere is a strong case for reform of land and property taxes in Scotland and the introduction of a land value tax might boost efforts to diversify ownership and ...
Macron to speed up tax cuts, raise wages after protests  RTE.ieFrench President Emmanuel Macron has announced wage rises for the poorest workers and tax cuts for pensioners, offering concessions after weeks of often ...
Taxman starts questioning & issuing notices to BPOs  Economic TimesIndustry trackers fear that more and more companies may now be issued notices and questioned.
US State of Ohio Accepts Bitcoin for 23 Types of Taxes  Bitcoin NewsThe U.S. state of Ohio has set up a cryptocurrency payment portal and reportedly starts accepting payments in bitcoin for 23 types of taxes this week. “Ohio has ...
Alexandria Ocasio-Cortez and Warren Buffett agree on this key point about taxes  CNBCAlexandria Ocasio-Cortez is the youngest woman ever elected to Congress. Warren Buffett is the chairman and CEO of Berkshire Hathaway and, according to ...
Are the French hit especially hard by fuel taxes?  The GuardianA planned rise sparked the gilets jaunes protest – here's how their fuel costs compare with the rest of Europe.
Even dying will cost more, as Whitehorse looks to raise taxes and fees next year  CBC.caThe $81.3 million operating and maintenance budget for 2019 will see increases in residential taxes, solid waste, water and sewer rates, and even cemetery ...
Six tax deductions you'll lose on your 2018 return  CNBCIf you were hoarding receipts in a shoebox with the hope of claiming a big break on your 2018 taxes, prepare to be disappointed. That's because the Tax Cuts ...
Tax Deductions 2018: 42 Tax Write-Offs You May Not Know About  EntrepreneurYou might not want to hear this, but it's already time to start thinking about tax preparation. Although April feels far away, the earlier you begin planning your tax ...
Rs 29,088 cr indirect tax evasion detected during April-Oct  Economic TimesThe investigation arm of the Finance Ministry has detected tax evasion worth Rs 29,088 crore in 1,835 cases during April-October period of the current financial ...
What the Amazon tax breaks really mean  Vox.comI think the easiest way to understand Amazon's HQ2 and the specific question of cities handing out tax subsidies is to abstract away from the particular details of ...
10 things you probably didn't know you could deduct on your taxes  Business InsiderWhat deductions are you missing when filing your tax return? Here are 10 that are often overlooked ahead of tax day 2019.
Tax on free services: PMO set to wade into ₹40,000 cr spat between banks, revenue dept  BusinessLineMumbai, November 25. With banks staring at a massive tax outgo of ₹40,000 crore on free services provided to customers to maintain a minimum balance, and ...
Niger government orders closure of Airtel arm over unpaid taxes  Economic TimesKOLKATA: The Niger government has ordered the closure of Bharti Airtel's whollyowned arm in the African country for nonpayment of over $107 million (about ...
Scaramucci Pitches ‘Swank’ Hotel for Tax Cut Aimed at Poor Areas  BloombergQuint(Bloomberg) -- When U.S. lawmakers enacted a new tax break to help low-income communities last year, backers said it would lift up some of the most ...
Run, tax-evaders, run  Economic TimesOn December 1, world leaders at the G20 summit in Buenos Aires, Argentina, agreed to reform the World Trade Organisation (WTO), even as the US and China ...
GM has barely paid federal taxes for years. Here's why  CNNGM has used one of the most popular tax breaks in corporate America to reduce, or even eliminate, its federal income tax bill since it came out of bankruptcy.
Taxes Up, But No Service Cuts as St. John's Tables Heavy Budget  VOCMResidents and businesses are going to be paying more in taxes next year as the capital city feels the pinch from declining residential property values.
Sorry France, but fuel taxes are a bitter pill we must all swallow  New ScientistThe reversal of France's fuel tax sends a worrying message to world leaders meeting this week in Poland to firm up climate commitments, says Olive Heffernan.
Half of direct tax collections netted; high growth clocked post DeMo: CBDT report  The Financial ExpressThe direct taxes revenue collection target for the 2018-19 financial year is Rs 11.5 lakh crore and the taxman is left with four months to achieve the target by the ...
Ivanka Trump and Jared Kushner Could Profit From Tax Break They Helped Push, Report Says  TIMEThe Kushners could profit even if they don't do anything — by potentially benefiting from a recent surge in Opportunity Zone property values amid a gold rush of ...
Tax savers start hunting for best ELSS ahead of tax-saving season  Economic TimesTraditionally, January to March is known as the tax-saving season. However, the season has already started in December ahead of the tax season next year.
5 tips for saving money on your 2018 tax bill  USA TODAYWith the changes in tax law approved last year, here are some things to do -— and not do — by Dec. 31 to save money on your taxes.
Income Tax department has become service-oriented, says Ashu Jain  Economic Times"The I-T department has evolved from being an administrative and tax laws implementation department to a *service*-oriented department," said Principal Chief ...
Why only 2% of Chinese pay any income tax  The EconomistOF COURSE NOT, I'm not an idiot,” says Liu Yongli, a chauffeur in Beijing, when asked whether he has ever paid personal income tax. Despite earning well ...
Single, married or cohabiting: Who pays the least tax?  The Irish TimesNot getting married could cost you more than €400000 in extra tax over 40 years.
Strongsville settles with Cleveland Clinic over new tax-exempt status; Strongsville schools may approve its own agreement Thursday  cleveland.comCleveland Clinic Foundation has reached an agreement with the city of Strongsville over the Clinic's tax-exempt status in Strongsville. ( Bob Sandrick, special to ...
Pakistan to introduce ‘sin’ tax on cigarettes, sugary beverages  The Indian ExpressPakistan will soon introduce a 'Gunnah Tax' or Sin Tax on tobacco products and sugary drinks which would supplement its annual health budget, PTI reported.
Ecommerce Cos Don't Have To Collect Tax From Sellers With Turnover Below $28.4K  Inc42 MediaSuch suppliers are not liable for registration, says CBIC. If the TCS has already been deducted, it can be shown while filing GSTR-8. Ecommerce companies are ...
1 Smart Tax Move to Make in December 2018  Motley FoolMost of the provisions of the tax reform bill that passed in late 2017 took effect at the beginning of this year. Between new tax rates and brackets, expansions of ...

Access to E-records by Taxing Authorities: A Case for Pakistan (Part I)

Background issues of access to recordsTo assess the records at... Read More

Tax Time Tune Up

Excerpted from the new book, "How to Do Space Age... Read More

How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share

How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More

Complaince of Tax Return in Electronic Commerce Taxation

Emerging Legal issues of Tax compliance of e-business Self-assessment system... Read More

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Arrangement (IRA) or... Read More

Save Money on Taxes - Is the Only Way to Get Your Tax Savings is to Sleep With an IRS Agent?

Tilting the Tax Laws in Your Favor.In order to accelerate... Read More

Send Your Kids To Summer Camp and Write It Off

If you paid someone to care for a child so... Read More

IRS Offer-in-Compromise, Hype or Hope?

"Settle for Pennies on the Dollar! IRS debts settled for... Read More

Access to E-records by Taxing Authorities: A Case for Pakistan (Part II)

All tax authorities to e-commerce transactions should investigate the record... Read More

Navigating The Internet Sales Tax Laws

QUESTION: I have been contacted by my local city... Read More

Tax Trap #1 -- Waiting to Incorporate: What A Difference A Date Can Make

NOTE: This is the first in a series of 5... Read More

Get Uncle Sam To Pay $36,000 For Your Childs Education!

Let's assume that you would like to begin saving for... Read More

Are You An Innocent Victim of These Popular Myths?

Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More

Failure To Pay Employment Taxes ? Penalties

As an employer, you must pay employment taxes if you... Read More

The Internet Tax Man Cometh

Q: I was contacted by the city tax collector to... Read More

Identity Theft ? Impacting Your Taxes?

If your identity is stolen, your finances can quickly become... Read More

How to Reduce the Estate Tax Using the A-B Revocable Living Trust

In a past article I relayed the plight of the... Read More

IRS Obtains More Than 100 Injunctions Against Tax Scheme Promoters

The IRS has obtained civil injunctions against more than 100... Read More

IRS Reports Tax Gap of $300 Billion

The Internal Revenue Service is reporting that the difference between... Read More

Requirements To Produce Tax Information (Whats Up With That?)

"What we've got here is a failure to communicate." ... Read More

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

Paying Workers ? What Can You Write-Off?

As your business grows, you are going to need help.... Read More

Donating Cars To Charity - New Tax Rules

On June 3, 2005, the IRS released guidance on charitable... Read More

Small Business Tax Deductions for Year End 2004

As a small business owner, it's wise to familiarize yourself... Read More

Tax Trap #2 -- Double Taxation: Isnt Once Enough?

Have you been thinking about incorporating your small business or... Read More