This story appears in the
February 2000 issue of
Startups.
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Did you know that some bribes may be tax write-offs? That bad
debt allowances are not deductible? And that you might be able to
persuade an IRS agent that it's valid to deduct the cost of
your personal chauffeur? (You do have one, don't you?)
All this and more is spelled out in 422 Tax Deductions for
Businesses & Self Employed Individuals (Bell Springs
Publishing, $17.95, 800-515-8050).
Written by veteran CPA Bernard B. Kamoroff, the book dispels
some pervasive notions (the home-office deduction does not
guarantee an audit) and points to those deductions that really are
red flags (the IRS really doesn't like business trips).
Kamoroff's contribution is loaded with key tax deductions, the
majority of which are unknown to business owners and several of
which may not even occur to tax preparers. Even if an accountant
handles your taxes, don't dismiss 422 Tax Deductions.
You know your business better than your tax preparer, who
doesn't have time to ask you about every possible deduction. So
spend a few hours skimming the alphabetical list of write-offs,
identify those that apply to you and point them out to your
accountant. Even if you and your accountant already know 421 of
them, that additional write-off will probably justify the purchase
price.
Neither this column nor the cited book is intended to substitute
for professional legal advice. Consult your tax preparer or the IRS
for specific information.
Paul DeCeglie (MrWritePDC@aol.com) is a former
staff reporter for Journal of Commerce and American
Banker.