Finding More Tax Deductions for Small Business Owners in 2011, 2012

Every year, do you catch your self wondering if there are more deductions you could have taken that would have saved you hundreds or even thousands of dollars on your taxes?

Have you had a conversation or overheard someone talking about how much they saved on their taxes and thought, why didn’t I do that? What is there you might be overlooking?

First, even though you may have missed a deduction in a previous year for a small item, it’s still a good idea to think about the biggest deduction opportunities first. Typically, these include Section 179 expenses for the purchase of business equipment, depreciation on items purchased that are not eligible for the Section 179 deduction – and for a share of the tax basis in your home if you use a home office, and expenses relating to the business use of any vehicle.

For the last item, remember there are substantial deductions for mileage, as well as for the other costs associated with the operation of the vehicle – which add up to considerable tax savings.

Next, there are many, many expenses that are just easily overlooked if you’re not careful to take what you entitled to. Professional fees, supplies, and casualty losses cover areas of expenses of which at least a portion often fail to be deducted. Any expenses that do not come directly out of the corporate accounts are easy to overlook, unless your tax accounting stays ahead or at least keeps up with your other bookkeeping.

Finally, you should be careful to review the unique opportunities that are available to you in your own situation.

You can use the tools at TurboTax Online, or the help of a professional who is familiar with situations similar to your own. However you manage your work, don’t let time slip by when you could be adding up the deductions that make your business more profitable. Start with a review through TurboTax today, and get the ball rolling!