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SMALL BUSINESS TAX DEDUCTIONS

When creating a new business, many entrepreneurs are unaware of the tax deductions they are awarded when doing their business income tax. It is important to keep track of all possible deductions and receipts proving those deductions. Here are a few to keep track of moving forward:

Auto Expenses – 53.5 cents/mile is the standard mileage rate for business deductions in 2017, If you rely on your car for your business, or if your business owns a vehicle, some costs can be deducted.

Current Business Deductions – $5,000 can be deducted in your first year of business for expenses such as advertising, utilities, office supplies, and repairs.

Business Entertaining – 50% of the bill can be deducted when entertaining current or prospective customers. Make note of the specific business purpose on a receipt or bill.

Travel – 100% of foreign travel (outside the US) expenses are deductible if you spent all of you time abroad on business. If you travel domestically, many expenses including plane fare, auto and taxi costs, lodging, food, postage for business materials can be deducted.

Interest – 100% of interest and balances are deductible if you used credit to finance your business purchases.

Moving Expenses – 50 miles is the distance your new work must be from your former home in order to be eligible for moving deductions.

Charitable Contributions – $250 or greater donations require written documentation from the charity.

By UNIKO Media Group