As a business owner, it's easy to overlook legitimate business tax deductions. After all, so much of your life likely has some element of tax-deductibility. Keep in mind that many things not normally tax-deductible for individuals become deductible to you as a business owner. Here are a few examples:
- Your car. If you use a car in your business, you can deduct the business cost of the car, plus operating and maintenance expenses that pertain to business activities.
- Personal assets. Depending on the percentage of use that pertains to your business, some of your personal assets may become business tax deductions. For example, if your home computer is used 60 percent for your business, 60 percent of its cost and operating expenses can become business tax deductions.
- Your home. The home office is the portion of your home that's used for business purposes. As a business owner, you may qualify to take a home office tax deduction.
SOURCE: Ask the Experts