Helpful Hints to Launch Your Own Business
100% of office equipment and expenses in the first year: Forget depreciation — use Section 179 of the IRS tax code to write off 100% of that new computer and the rest of your office equipment. Office equipment consists of physical widgets and stuff you use up (paper clips, pens, sticky notes, toner, legal pads, thumb drives, computer supplies, planners and calendars, etc.). Office expenses can be more substantial or service related (janitorial supplies, cleaning service, coffee supplier, water cooler, etc.). Coffee machines, coffee and filters also count! If you’re a small business owner and you’re not familiar with Section 179 — you should be. Check out this government website devoted to making it easy for small business owners to understand and apply the benefits of Section 179 to their business tax returns.
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Mileage (55 cents per mile for every business mile you drive): Most people do not take advantage of the mileage deductions because it’s so difficult and time consuming to track. But the numbers can add up, especially if you are running errands while on the job, like using your car during the day to pick up supplies or mail, transport clients, make deliveries or engage in any other business-related use. Or, if you use your car to visit clients, customers or potential customers, the mileage can add up. Rather than waiting until the end of the year to tally it all up, keep a notepad and a pen in your glove compartment to record the dates and miles.
Other tax deductible items include cell phone minutes. Click here to see them all
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