Business Deductions

March 15th of every year is the due date for Business taxes. The following are some deductions you may be able to use for your Business tax return:

Business Expenses - In order for an expense to be considered deductible it must be useful or appropriate for your business as well as customary in the business or trade. Some of these expenses could include but are not limited to the following:

* Payroll Expenses- You may be able to deduct the pay you give your employees.
* Retirement Plans-These plans allow you to save money for your own or your employees' retirement.
* Rent Expenses - In general you can deduct the amount you pay for property that is used for your business, for a property that you do not own.
* Business Interest-this can be deducted for any interest you paid for funds borrowed to pay for business activities.
* Taxes-You can deduct federal, state, local and foreign taxes that directly relate to your business as a business expense.
* Insurance-You may also be able to deduct the cost of insurance as a business expense.

Capital Expenses - Some costs are capitalized and not deducted as they are a part of your investment in your business. These costs are Business start-up cost, Business assets and Improvements.

Costs of Goods Sold - If your business manufactures products or purchases them for resale you usually need to value the inventory at the beginning and end of the tax year, to determine the cost of goods sold. Keep in mind if you deduct the cost from goods sold you cannot deduct it again as a business expense. Some of these expenses would include: cost of products or raw materials, and storage.

Standard Mileage- The IRS has provided an optional standard mileage rates that can be used to deduct mileage for automobile for business, charity, medical or moving purposes. Beginning Jan 1st 2013 the rates are:

* 56.5 cents per business mile driven
* 24 cents per mile driven for moving or medical reasons
* 14 cents per mile driven for charitable organizations.