Seven Key Tax Deductions For The Self Employed

It’s wise to familiarize yourself with the some key deductions that may reduce your tax bill for 2004, as a sole proprietor.

Smallbusiness consultants generally recommend that you hire an accountant to prepare your tax returns, payroll and financial statements. It is as a rule of a thumb, also meet with your accountant well before the ‘year end’ rush to discuss such matters as tax planning, and record keeping for tax deductions.

Seven common small enterprise tax deductions. Employee Benefit Plans -You may deduct contributions to employee benefit plans. Relying on your circumstances the maximum contribution that you may deduct per employee in a qualified retirement plan can go up to.

Seven common family-run entrepreneurship tax deductions. Employee Benefit Plans -You may deduct contributions to employee benefit plans. Relying on your circumstances the maximum contribution that you may deduct per employee in a qualified retirement plan can go up to.

For a ‘SEP IRA’ or Keogh Automobile ‘Expenses You’ can elect to deduct the actual expenses incurred for the businessrelated portion of your car or truck expenses, or simply take the 2004 standard mileage rate of 375 cents per business mile.

Taxes -You may deduct Social Security and Medicaid taxes paid to match required withholdings on employee wages, federal unemployment taxes, sales taxes and real estate or personal property taxes paid on business assets.

While some or the majority of the maintenance and repair expenses associated with the property, home Office – relying upon whether you use your home and akin real estate for business purposes, you may deduct some or all can be taken on passenger cars, equipment used for entertainment or recreational purposes. Professional Fees -You may deduct professional fees, just like those paid to a lawyer or accountant.

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