Small Business Toolbox

A library of business management info


Small Business Tax Deductions

  • Capitalize Now on Capital Gains Rates
    10/01/2008
    Currently, the top tax rate on qualified dividends and most long-term capital gains is 15 percent. However, a new Congress and a new administration could raise the rates next year. Now may be a final opportunity for business owners to enjoy this low tax rate.
  • Important Small Business Tax Provisions Facing Expiration
    10/01/2008
    An AMT patch and extensions of the restaurant/leasehold tax incentives and the optional sales tax deduction were included in H.R. 6049, which passed the House this summer. At press time, the Senate had not yet acted on its version of the bill. NFIB will continue to push lawmakers to make these changes and help our nation’s small business owners.
  • Time for a New Business Vehicle
    10/01/2008
    Despite an uncertain economy, more fuel-efficient models and tax incentives make buying a new vehicle for your business a viable option..
  • NFIB Works on Diesel Tax Parity Act
    10/01/2008
    The Diesel Tax Parity Act (S. 2896 and H.R. 6487) would help small business owners who depend on diesel-operated vehicles to run their businesses by reducing the federal tax on diesel fuel from 24.3 cents per gallon to 18.3 cents per gallon.
  • Be Careful About Tax Deductions for That Office or Shop in Your Home
    09/26/2008
    Winter is fast approaching and you know what comes along with that: tax time. Whether filing as a wage earner working for someone else or the proprietor of your own business, it pays to be ready before the tax deadline arrives. It's especially important for the person who operates from an office or shop in the home to have all pertinent information assembled as soon after the first of the new year as possible. Careful determination of legal deductions for that home office or shop can help save money on taxes.
  • Tax Tips for Business Owners
    04/01/2008
    In a tightening economic climate, smart business owners take advantage of all opportunities. Here are a few you might not be aware of, courtesy of the IRS.
  • An Extension for Tax Filing Can Be Good Business
    03/31/2008
    In recommending a tax filing extension under any circumstances it's necessary to first dispel a common misconception: that filing for an extension is an automatic red flag to the Internal Revenue Service, making the taxpayer more vulnerable to an audit. This fear has no basis in fact. Roughly nine million taxpayers receive extensions each year, and the IRS has nowhere near the resources to audit even a limited portion of these. What often does set off an audit for a small business, completely independent of whether there's been an extension, are omissions, mistakes, or claiming levels of income or expense that the IRS considers inconsistent with those to be expected of the kind of business that's reporting.
  • Tax Breaks for Environmentally Conscious Companies
    03/24/2008
    Environmentally conscious businesses can save more than the planet—they can save some money on their taxes. Here are four tax breaks that can save a company some green by going greener.
  • Getting Ready for Tax Time
    03/17/2008
    When faced with multiple demands on our time we often give the most attention to whatever task is represented by the next deadline. Taxes aren't due until the middle of April, so why not wait until early April to take care of them? Many people work from deadline to deadline, always addressing the highest priority of the moment, and the mid-April tax deadline simply takes its place on the list of priorities. But if we insist on sticking to priorities, we need to put the annual tax chore in its proper place in the priority order.
  • Saving Green
    03/11/2008
    Going green can save more than the environment--for small-business owners operating on a tight budget, it can save their bottom lines, too. With tax breaks available to green businesses, it is now cheaper than ever to make your enterprise eco-friendly. Check out these green ways that will keep you in the black come tax time.
  • Don't Fall for These Common Tax Myths
    02/12/2008
    When it comes to your business taxes, deciphering the Internal Revenue Code is hard enough. Don't complicate the process by falling for bad tax information. Tax filing is fraught with enough land mines. Don't make the process any worse by buying into common--and potentially costly--tax myths.
  • Smart Year-End Equipment Purchases
    11/06/2007
    Year-end tax savings break down to a rather simple formula: defer as much income as possible to the coming year, while making as many purchases as possible in the current year. Making the most of this formula, however, requires constant tax awareness. Financial gurus point out that taxes should not be thought of as a one-time event, but rather an ongoing, year-long event. Issues you will need to consider include business income and purchases, buying and selling of investments, taking distributions of retirement funds and stock options, etc. Each of these should be discussed throughout the year with tax and investment advisors.
  • Tax-Saving Moves That Will Pay Off Next Filing Season
    08/21/2006
    During the dog days of summer, taxes are probably the last thing on your mind. But if you want to make sure your business doesn't overpay its tax bill next filing season, you need to do some tax planning now.
  • New Tax Breaks Encourage Businesses to Get "GO-ing" in Hurricane-Damaged Gulf Coast Region
    07/28/2006
    Rebuilding of the Gulf Coast in the wake of 2005's unprecedented hurricane season continues, and businesses that have returned to or decided to invest in the hardest-hit areas are getting some encouragement from the Internal Revenue Service.
  • Mixing Business With Pleasure: What Counts as a Business Deduction?
    03/21/2006
    Anyone who has been in the business world for more than a few years has probably heard of the infamous “three-martini lunch” of days gone by. Those who have heard of it know that the three-martini lunch has gone the way of the buggy whip, never to return. The three-martini lunch essentially vanished for two reasons: the increased attention of many organizations to alcohol consumption during the workday and the fact that such expenditures are no longer fully deductible as business expenses.
  • Your Assignment: Write Off Your MBA
    01/24/2006
    Think an MBA could help you make better decisions in your small business? A United States Tax Court ruling last August could make that advanced degree more affordable, saving small-business owners thousands on their taxes each year.
  • The Small-Business Tax-Deduction Checklist
    03/02/2005
    Small-business owners need to be tax wise throughout the year, not just during tax season. The following checklist can help you take advantage of all the deductions you're legally entitled to. Many of these items require special consideration when deducting, so always consult with your accountant when preparing tax forms.
  • What’s New For 2004 Returns
    02/01/2005
    Sweeping tax law changes combined with cost-of-living adjustments to numerous tax items mean new write-off opportunities on 2004 returns. Here are some important changes to remember:
  • Tax as You Go
    02/01/2005
    Carefully accounting for travel expenses makes business travel bearable
  • Year-End Shopping: Buy Now for Your Business to Save on Taxes Next April
    12/13/2004
    Many small-business owners operate on the principle that purchase costs for machinery, vehicles and other major business equipment must be depreciated over a number of years for tax purposes.
  • The Most Overlooked Tax Deductions for a Small Business
    12/10/2004
    Most experienced small-business owners have an ongoing relationship with their tax specialist to facilitate the tax-prep process from year to year. Even so, infrequently-used deductions can be overlooked. The following list can serve as a general guide of potential deductions and should be reviewed during tax preparation.
  • All-Inclusive Look at Taxes Your New Business Will Need To Pay
    11/29/2004
    It is important for people starting new small businesses to be familiar with the taxes they will need to pay—both during start-up and on an ongoing basis.
  • The Truth About Receipts for Business Purchases: What the IRS Says You Need to Have
    10/01/2004
    The IRS requires a record of all purchases that will be deducted (expensed) on a business' tax return. But there's a lot of confusion over what that means in practice. Get the details and organize your paper trail.
  • More Bad News for Gifting Clubs: The IRS Is Watching
    05/03/2004
    Promoters of gifting parties claim that such events are legal and guarantee a return on your gift. Both of those claims are false.
  • Writing Off Losses on a Part-Time Business
    03/25/2004
    If you own a full-time business and a part-time one, follow IRS guidelines to see if you can write-off losses on your part-time venture to offset income from your full-time business.
  • Avoiding Mistakes on 1099 Miscellaneous Income Forms
    03/19/2004
    When tax season comes around each year, service providers begin to receive their 1099-MISC forms (Miscellaneous Income form) from client
  • MyBusiness Manual: What to Keep and What to Toss
    01/28/2004
    The MyBusiness Manual in our Feb./March issue focused on taxes. Part of the burden of dealing with your taxes is the overwhelming amount of paper.
  • Trim Down Your Taxes
    01/23/2004
    If you're in business, you want to maximize your profits. Learning how to cut taxes will help you achieve that goal.
  • Four Simple Ways to Keep Uncle Sam Off Your Business's Gift List
    12/15/2003
    Global small-business service provider, Fiducial, offers tax tips to help small-business owners as they assemble their holiday gift list.
  • Tax Law Changes Can Help You Save on Equipment Purchases
    12/04/2003
    Changes in the tax law may make it easier for you to purchase equipment for your business this year.
  • 'Tis the Season...to Save on Taxes
    12/01/2003
    Charitable giving now will ease your burden next April
  • Tax-Deductible Medical Expenses a Helping Hand in Hard Times
    03/12/2003
    Most people don't realize how much of their medical expenses can actually be deductible.
  • What's New for 2002 Returns?
    02/03/2003
    Some tax rules have changed--here's the rundown.
  • Paying for Your Mistakes
    02/03/2003
    Are you overlooking allowable deductions in your business?
  • The Home Office Deduction
    10/22/2002
    Tax help for home-based businesses.
  • Simple Ways to Keep Track of Mileage and Gas Expenses
    04/16/2002
    Every small business or home-based business owner knows that they have to record miles, gas expenses and repairs. The trick is doing it regularly.
  • The Tax Advantage of Combining Business and Pleasure
    03/28/2002
    In the throes of winter winds, even serious business minds turn to thoughts of sunny beaches.
  • Tax Credits
    03/28/2002
    This Workshop discusses the complexities of tax credits.
  • Watch Out for Tax Shelters With Red Flags
    03/28/2002
    In today's Workshop, Edith Helmich examines seven tax shelters which could pose potential harm.
  • Home Business Deductions
    03/28/2002
    At tax time, home business owners have unique opportunities to apply deductions to their gross income.
  • Taxes: Home Office Deductions
    03/28/2002
    In today's Workshop, Edith Helmich looks at some home office deductions that could save you money on taxes.
  • What Online Activities Mean for Multistate Taxes
    03/28/2002
    If you use a Web site in your business, understand what, if any, impact it may have on your liability for income taxes, sales and use taxes, and even employment taxes in multiple states to avoid unnecessary costs (e.g., tax penalties; accounting fees for
  • Mapping Out an Auto Expensing Strategy
    03/28/2002
    To use the standard mileage deduction or to deduct actual car expenses? That question drives many small business owners directly to an accountant.
  • Giving to Your Advantage
    03/28/2002
    Charitable giving makes you feel good twice: when you donate to a worthy cause, then again when your business gets a tax write-off. But how you take the deductions and the amount of the deductions you can claim depend on your type of business
  • Drive a BIG Deduction
    03/28/2002
    Large sport-utility vehicles and minivans don't need to be depreciated if bought for business use, meaning you can deduct up to $20,000 in the year the SUV or minivan is bought. The remainder of the cost can be depreciated.
  • Late Fees Quickly Mount
    03/28/2002
    The IRS charges interest, compounded daily, on any unpaid tax from the due date of the tax return until the date of payment.
  • 3 Deductions You Don't Want to Miss
    03/28/2002
    There are all sorts of nitty gritty deductions and other tax avoidance measures businesses might be missing. Here are a few you may want to check out: