Posted by: RightMethod on 12/04/2015

Five Tax Write-Offs for Business Owners

As a small business owner every cent counts, which is why tax season can appear so daunting. It can be brutal realizing that a solid chunk of your business’ profits are slated to be shuttled off to the Internal Revenue Service. One thing you can do to mitigate your tax burden is work with your accountant to identify as many tax write-offs as possible. Below are five of the most common business expenses written off to lower your tax bill.

1. Bad Debts – Sure it’s terrible when a client doesn’t pay, but there is no reason for you to be left completely holding the bag. On an accrual basis, bad debts not collected are deductible. Business' keeping books on a cash basis can write off the cost of the goods that were not paid for.

2. Professional Fees – If you’ve had to pay an attorney or better yet, an accountant, for services rendered this year those fees are deductible business expenses.

3. Travel, Meals and Entertainment – Have to travel for work? Travel expenses can be deducted along with 50% of all business-related meals and entertainment.

4. Auto Expenses – If you use a car for business expenses keep track of the mileage. The IRS allows you to write off business mileage to the tune of 57.5 cents per mile for 2015.

5. Retirement Plans – If you are self-employed sock away as much as you possibly can in your SEP-IRA or Keogh. Money put in these accounts can be deducted from your personal return.

Maximize your deductions by working with a reputable accountant, there is no reason for you to have to pay more than the government expects you to.

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