Get the Most From Your Business Tax Deductions

The time to act is now. The sooner you file, the better you can take advantage and maximize your business deductions this year. This post will share the top 5 Business Tax Deduction Tips to take heed of.

1. Business Losses

Your business losses for the year can be deducted from your personal income, but only if you experience financial loss that exceeds your personal income for the year. Additionally, you might be able to use some of the year's company losses to decrease taxable income.

2. Keep Excellent Records

Make sure your bookkeeper has every single receipt for every business purchase. If you do the bookkeeping for your small business, you're responsible. Don't claim a business expense without receipts and proper documentation which prove this expense is for your business.

3. Always on a Separate Receipt

Keep your business and personal life separate, or you won't be able to make a business deduction. Never combine personal and business expenses on one receipt if you hope to make a deduction.

4. Bookkeeping Expenses

You can deduct the cost for payroll services, legal services, and fees associated with hiring tax professionals. (So, as the IRS sees it, you have no excuse not to hire a pro and get your taxes done on time. Watch out!)

5. Be Creative

You already know that you should never cheat the IRS; this is definitely not what I'm implying. Instead, I'm asking you to be creative and find loopholes in the rules to your advantage.

I've seen unexpected business expenses make it as tax deductions, such as an infamous example when exotic dancer "Chesty Love" took her case to the Supreme Court and won the chance to deduct the cost of her breast augmentation.

* * *

For more loopholes or "legal tax cheats" when it comes to maximizing tax deductions, check out my article on Get Rich Slowly.