What Qualifies as an Itemized Deduction

Like most people, you probably think of deductions as a way to reduce your taxes. But that’s not quite what they are. A deduction is a tax break that allows you to take an amount of money out of your taxable income and use it to lower your overall taxable income.

Itemize deductions

These Types of Deductions can be Either Personal or Business Deductions

Personal deductions include things:

Medical expenses (deducting them can help reduce your taxable income by up to 40% if you’re a high-income earner).
State and local taxes (deducting them can help reduce your taxable income by up to 40%).

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Tax Deductible Business Expenses That Many Small Businesses Miss

Tax Deductible Business Expenses

Far too many small businesses, particularly start-ups and sole traders, are paying tax on things they do not need to. Largely this comes from not understanding which business expenses are tax deductible. These business expenses are there for small businesses to exploit – so is there something your small business is missing?

Employee Costs

Many costs to you or your employees incurred by your business are tax deductible. Expenses include cell phone bills for business calls, union dues, relevant magazine or periodical subscriptions, staff uniforms or business attire and memberships to relevant societies amongst others. Even if you are not currently using any of these services it may be worth looking into them knowing you can use them a little bit cheaper.…

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Planning Your Year-End Business Tax Strategies

planning your tax strategies While everybody else gears up for the holidays, small businesses should have another thing in mind apart from sales: filing taxes. As the fiscal year draws to a close, it is important that business owners review the current financial situation and start implementing strategies to help minimize your income tax.

There’s no better time than the present to start planning which tax strategies are best for your business, for you to get deductions. Before the holiday rush, business owners should already have a plan in place. If you don’t have one yet, now is as good a time as any to come up with one.…