Business owners often pay more tax than needed. Why? Well, it’s basically the same principal as individual taxpayers, they miss deductions that they might have taken but was not aware of or didn’t figure applied to them.
Some common business deductions for which you might be eligible and maybe have never considered are listed below. As with any deduction, there can be restrictions that need to be considered before including them in your return.
Carrying Charges
Carrying charges are fees and interest on property. Some carrying charges may be deductible if they are not capitalized (counted as long-term expenditures).
Research and Experimental Costs
Costs of research and experimentation may be deductible if you choose not to list them as capital (long-term) expenses.
Circulation Costs
If you have a publishing business, you may be eligible to deduct costs for circulating a newspaper, magazine, or other periodical. This deduction does not apply to land or property.
Environmental Cleanup Costs
You may be eligible to deduct costs for cleanup of environmental spills or other incidents, up to January 1, 2008. These costs are considered as “Other Deductions.”
Business Startup and Organization Costs
You may be eligible to deduct some of your business startup costs up to $5,000 and organizational costs up to $5,000 (for expenses after October 22, 2004). If your startup or organizational costs exceeded $50,000, your deduction may be limited.
Disability Access Costs
If you make improvements or remodel your business facility to accommodate customers and employees, you may be eligible for a deduction for these expenses. The annual limit for these deductions is $15,000.
For more information, including any restrictions and details on these deductions, see IRS Publication 535.
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