subject: What Every Business Man Should Know About Small Business Tax Deductions [print this page] Part of your responsibility as a small business owner who runs a business from home is to know the tax advantages and liabilities that are associated. It is vitally important to understand what tax responsibilities you will have before going into any business, but just as important is understanding the major small business tax deductions available to a HBB.
Small business tax responsibilities are extremely important to know about. Ignoring your tax responsibilities could result in serious penalties. And, on top of that, any illegal actions -- even if they are due to lack of knowledge -- can bear civil penalties. Equally important is understanding the substantial tax deductions available to home-business owners. Not understanding them can cause you to overpay your taxes by as much as $5,000 or more every year.
Marketing Costs
A lot of small business owners tend to forget about this, but you can actually deduct your marketing or advertising costs from your taxes. Your advertising or marketing costs may include business cards, signs to put on your car, promotional flyers, and clothing with your company's logo embroidered on it.
Some Personal Expenses become Business Deductions
Since youre running your business from home, a portion of your rent, utilities, insurance, repairs and maintenance may also become tax deductible expenses, as long as you use a portion of your home for on a regular and exclusive basis for business purposes.
Depreciating Furniture
The furniture that youre using part time for business purposes can also be partially tax deductible. You get this deduction by depreciating a portion of the total cost of the furniture over a period of years.
by: Ron Mueller
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