Property acquired for business use, rental use, or any other income producing use that is expected to last more than one year cannot be deducted as a business expense all in the year it was aquired. This is where depreciation comes into play. You must deduct the expense over the usual life of the
When you use your car or truck for business, generally the expenses associated with that are deductible as business expenses. You can deduct the auto expenses for business when you are traveling from one work location to another, visiting customers, attending business meetings away from your
The first time homebuyer $8,000 tax credit has been extended beyond the orginal November 30th deadline. First time homebuyers now have until April 30, 2010 to entering into a binding contact to purchase a home and must close on that home by June 30, 2010. For qualifying purchases of principal
When you own your own business and you are a sole proprietor, you can set up a retirement plan for yourself and your employees if you have them. Once you have set up a retirement plan, the contrbutions that you make for yourself are deductible on your tax return. There are a few times of
When an officer of an S Corporation performs services for the corporation and are entitled to receive payment for those services then their compensation should generally be considered wages. Under the Internal Revenue Code, corporate officers are specifically included in the definition of an
Nearly everyone enjoys eating, so an obvious and fun way to entertain your business prospects and to motivate your employees is with food. However, if your record keeping is inadequate or simply incorrect, you could run into trouble in an audit. There are several important requirements you must
On your personal form 1040 you may only deduct charitable contributions if you itemized your deductions (use Schedule A). In order for the contribution to be deductibe it must be made to a qualified charitable organization. When contributing cash you must maintain a record of the contribution.
For business owners with questions about deducting expenses for travel, meals, entertainment, and gifts, here is a small overview. Generally meals and entertainment are deductible as long as they are ordinary and necessary expenses that are directly business related. An ordinary expense is one