Each year business owners search for ways to save money on taxes in order to increase their profits. Though a business owner benefits from taking as many deductions as possible, no one wants to risk making an error on their tax return that could lead to additional fees. It is important to remember that with the help of a qualified tax preparer or attorney, it is possible to find multiple deductions that can save your business money. Talking to a professional about these seven little known tax savings that California business owners miss is a good way to begin exploring ways to increase your business’s profits without running the risk of making expensive filing errors.
Business Opening Expenses
Launching any new business venture is costly and for that reason, it is possible to deduct these start-up expenses. Utilities, advertising, and other expenses can be deducted as capital expenses that are separate from your operating costs incurred after the business is open.
Business Books
Books purchased for business related informational purposes are fully deductible. This includes books that are used to help you learn about taxes and legal issues.
Legal and Consultation Fees
Starting or operating a business often requires the assistance of an attorney. These legal expenses are deductible throughout the life of your business. Additionally, consultation services are also deductible.
Interest
The interest accumulated on credit cards and personal loans used on business related purchases are fully tax deductible. Just be sure to maintain records that show how the funds were ultimately used for your business.
Small Business Property
Certain types of business property such as computer software, business research facilities, equipment used for production or transportation, certain storage buildings, and other property are fully deductible.
Stock Donations
Appreciable stocks that are donated to a charity instead of cash are fully deductible. Most importantly, your business can deduct the current value of the stock at the time of donation instead of the original purchase price.
Travel Related Expenses
Though many business owners know that they can deduct the cost of their airfare and hotel, they do not realize that it is possible to deduct the full cost of expenses related to travel. That includes tips, dry cleaning, taxis, and vehicle rentals.
Discuss Tax Savings with a Professional
Starting and operating a business is expensive, but it is possible to reduce tax-related costs through the use of often missed tax deductions. These seven deductions that are often overlooked represent only a few of the possible ways that a business can reduce their tax liability. In order to find out how many tax savings you qualify for, contact your tax professional, and if you do not have anyone to consult regarding your business taxes, request a referral from a trustworthy source. MMZ LAW can answer your questions and provide you with the assistance you need. Call us at (909) 256-6702 to schedule a FREE consultation at our office in the Claremont Village to discuss your needs.
BROUGHT TO YOU BY:
MMZ LAW, A PROFESSIONAL CORPORATION
341 W. 1st St. Suite 100
Claremont, CA 91711
MARIVEL M. ZIALCITA is the founder of MMZ LAW, A Professional Corporation, where she practices in the areas of trust & estate, elder law, special needs, conservatorship, trust administration, and probate. Ms. Zialcita is a frequent speaker on trust and estate matters and holds memberships in the State Bar of California, Trust and Estate Section, The San Bernardino County Bar Association, Wealth Counsel and Elder Counsel. She currently assists in the pro bono legal services program at the James L. Brulte Senior Center in Rancho Cucamonga, California. She is based in Claremont but assists clients throughout Southern California.
This information is educational information only and not legal advice.