I, for one, hate waiting til the last minute -April 15 (or any date close to it) to start putting my info together. I prefer to have everything said and done no later than February end. This way, God Forbid, if any unexpected surprises, law changes, errors or omissions, blah-blah-blah should arise, I will have enough time to possibly correct, adjust and resubmit before deadline. Yes, we can always file for an extension if needed, but really, who wants one more thing left over on their “to-do” plate that has to be dealt with.
Whether you are a Small Business owner, Independent Contractor or Employee, the question of the day is; “have you been keeping up with all of your allowable expenses for this past year ?” If not, this is the perfect time to make your resolution to start keeping better records of your expenditures starting January 1, 2010. Can you believe it...that was just 1 day ago! Here are just a few typical business expenses related to Small Business professionals:
Auto Travel- Deductible business mileage is travel to and from:
- Client meetings
- Continuing Education Classes
- Business Trips
This rate has been reduced to 50 cents per mile, effective January 1, 2010.
Try to remember to keep receipts for all auto operating expenses:
Parking meters, tolls, gas, oil, repairs, insurance, car loan interest, vehicle registration.
Professional Fees and Dues - Paid to organizations related to your profession are deductible.
Document and keep track of fees paid to:
- Business Associations
- Chamber of Commerce
- City/State Business License
Other Business Deductions: Following are examples of ordinary and necessary business expenses and supplies that are generally tax deductible.
- Advertising and Promotion
- Business Equipment
- Computer software, supplies, internet service pertaining to your business
- Consultation/Legal Fees
- Film and processing pertaining to your business
- Office Supplies- Stationary, Briefcase, Copier/Fax supplies
- Photocopy expenses
- Postage, shipping and freight
- Greeting Cards
Many deductions have specifications and “only if” rules/regulations so, please, consult with your Tax Advisor for a complete list of legally allowable deductions.
If you are like me, don't have a Tax Advisor, (Hubby and I do our own taxes – I am an IRS Authorized E-File Provider and Tax Preparer), go directly to the source..."The IRS", for more info.
Keeping better records is a learned and practiced behavior. It will be difficult at first, but if you are like me, every year will be a little better than the last if you stick with it. Just consider it one of your New Year's resolutions and commit to it. It will make your life so much easier come this time next year!
Good Luck and I Wish Everyone A Healthy and Prosperous New Year!
