Before you start to do your taxes this season, inc.com recommends taking the time to review your options. According to inc.com, business owners overlook these five deductions:
- Equipment Expensing. Computers, telephones, furniture and other equipment entitles a write-off. It usually depreciates over a period of time, but business owners are able to deduct up to $108,000 of cost for a single piece of equipment.
- Commercial Buildings That Go Green. New for 2006, building owners who meet certain energy standards can deduct as much as $1.80 per square foot. You first have to obtain a certificate and you can go to efficientbuildings.org for details.
- Domestic Production Activities. You can lop off 3% of net profits from domestic production activities such as selling, leasing or licensing items manufactured, produced, grown or extracted in the country.
- Accelerated Depreciation for building components. The cost of commercial buildings is usually depreciated over a period of 39 years, but certain parts of the building can be separately depreciated over much shorter periods. The more rapid the write-off, the greater the up-front savings to the owner.
- Vehicle Use. This can be confusing but you should definitely check into this with your tax consultant because IRS standard mileage rate is 44.5 cents per mile.
So ask your tax consultant about these deductions and save some money!
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