Tax Deductions for Small Businesses

Locate a Local Business Lawyer

Most Common Business Law Issues:

What Part of My Business Finances Does the IRS Actually Tax?

The part of any business that gets taxed is the net business profit. The net business profit is determined by subtracting the cost of doing business from the total gross income of the business. Since you are not taxed on business expenses, you can use them to deduct from the amount of your taxable profit.

What Business Expenses Can I Use as Tax Deductions?

The IRS allows you to deduct any "ordinary and necessary" expenses you paid to help run your business. This can cover a wide range of items, including but not limited to:

Generally, the rule of thumb is that the expense must be reasonably related to benefiting your business before it can be used as a deduction for your business taxes. That means you probably should not count any expenses too remote from the operation of your business. The IRS does not allow purely personal expenses to be deducted from your business taxes. Also, keep in mind that it must be a reasonable business expense. Any expense that is unnecessarily large will generally not be allowed as a deduction on your business taxes.

Should I Consult a Tax Attorney when Doing Taxes for my Small Business?

Tax law is an incredibly vast and complex field of law. If you are unsure of how to do your business taxes, or want to be sure you get every benefit you can when you do your business taxes, you will probably want to consult with an experienced tax attorney. Your attorney can help you determine which expenses are legally deductible and help you avoid any trouble with the IRS.

Consult a Lawyer - Present Your Case Now!
Last Modified: 03-13-2012 03:44 PM PDT

Find the Right Lawyer Now

Did you find this article informative?

Link to this page

Law Library Disclaimer

Tax Deductions for Small Businesses, small businesses lawyers,right tax deductions,business tax,business taxes,business expense,small business,businesses lawyers,business,tax,law,deduct,legal,expense,lawyer,expenses,taxes,deduction,small,property,deductions,consult,attorney