Business Tax Deductions

As we enter mid-March, taxpayers begin to· Real estate tax paid on business
become veryinterested in deductions. Followingproperty
are a few thatyou may be entitled to claim.· Special local assessments for repairs or
Deductible Expensesmaintenance tobusiness property
· Office expenses· Promotional costs that create goodwill
· Rent or lease paymentssuch as sponsoringa youth team
· Advertising· Business association dues
· Costs of goods sold· Business-related magazines
· Insurance costs· Casualty losses
· Utilities· Beverage services
· Payments to independent contractors· Credit bureau fees
[file form 1099]· Taxi fares
· Accounting fees· Telephone calls made on trips
· Legal fees· Self-employment tax [if applicable]
· Communication expensesSales Tax Deduction Option
· Credit Card Interest for businessThe American Jobs Creation Act of 2004
chargesprovides alltaxpayers with the option to claim a
· Travel expensesdeduction for state andlocal sales taxes instead of
· Vehicle expensesstate and local income taxes.
· Business-related meals andIf you purchased a high cost item during 2004,
entertainmentyou may findthat the total sales tax you pay far
· Uncollected receivablesexceeds your stateincome tax payment. If so,
· Bank fees on business accountsyou should determine whether youshould claim a
· Interest payments on noteslarger deduction by using the IRS Optional
· Excise and fuel taxesState Sales Tax Tables found in IRS Publication
· Employment taxes600.