Taxes informational articles

Seven key tax deductions for the self employed - taxes

 

As a sole proprietor, it's wise to bring into the light physically with the some key deductions that may cut your tax bill for 2004.

Small-business consultants in the main commend that you hire an accountant to cook your tax returns, payroll and pecuniary statements. But you be supposed to also meet with your accountant well beforehand the year-end rush to chat about such matters as tax planning, and album custody for tax deductions.

Seven communal small big business tax deductions:

1. Employee Allowance Plans - You may subtract assistance to worker advantage plans (such as physical condition assurance plans and retirement plans). Depending on your conditions the greatest giving that you may abstract per worker in a capable retirement plan can go up to:

$100,000 or more For a Definite Advantage Plan
$44,000 For a 401(k) plan
$41,000 For a SEP-IRA or Keogh

2. Automobile Expenses- You can elect to remove the genuine expenses incurred (including gas, oil, tires, repairs, insurance, depreciation, and rent or lease payments) for the business-related portion of your car or truck expenses, or basically take the 2004 banner mileage rate of 37. 5 cents per affair mile.

3. Taxes - You may subtract Community Confidence and Medicaid taxes paid to match mandatory withholdings on member of staff wages, national unemployment taxes, sales taxes and real estate or delicate belongings taxes paid on commerce assets.

4. Home Agency - Depending on whether you use your home or other real estate for commerce purposes, you may subtract some or all of any advance advantage paid, as well as some or all of the maintenance and darn expenses coupled with the property. The cost of utilities and affair equipment allied with big business use are also deductible.

5. Depreciation - Decline may be taken on passenger cars, paraphernalia used for entertainment or recreational purposes (i. e. , photographic equipment, cell phones and computers), as long as these items are used only for the business.

6. Professional Fees - You may abstract certified fees, such as those paid to a lawyer or accountant.

7. Meals and Entertainment - You may subtract 50 percent of meal and entertainment expenses completely linked with the conduct of your commerce Bring to mind to keep on file the minutes and documents de rigueur to bear out all of your deductions.

Daniel Lamaute, of Lamaute Capital, Inc. specializes in locale up retirement plans for small commerce owners. http://www. InvestSafe. com


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