Shifting Personal Expenses Into Business Deductions Part 3

Part 3 of Shifting Personal Expenses Into Business Deductions will show you seven more tax deductions that can save you tons of money.

Children

You can hire any child at age seven for simple clerical tasks. This can be filing, straightening up the office, or emptying waste baskets. Make sure to teach them how to keep track of their services in an Excel type program. If a child is younger than 7 they can be used as a spokes person or a model. Put them on your flyers or any promotional material and pay them a modeling fee. Although the number changes over time, you can pay them approximately 6 thousand dollars a year. You could then put this money into a retirement or education fund for your child. This would not only reduce your income tax but give your child a huge jump financially.

Healthcare

As long as you use a written medical reimbursement plan your company can pay for your premiums, deductibles, and co pays. Even things not covered by your medical insurance including dental, eye glasses, chiropractic care can be written off.

Retirement

There are many kinds of retirement plans. The idea is to put as much in them as possible. Many people feel that they don’t have the extra money. Using the tax saving strategies that have been listed you can easily save 5 or 10 thousand dollars depending on how much you make. You could then use this money from now on for your retirement.

Cell Phones and Telephones

If you are using your cell phone for business then they are completely legitimate deductions. If you have a home office get two lines, a personal and a business line. Pay for the business line out of your operating account. This line can also be used for personal calls but the IRS likes to see a line dedicated to your business. A separate fax line or high speed DSL connection can also be written off.

Automobiles

Your business can pay for your car to the extent that you use it for business. You can either do this by actual expense or percentage of use. You can deduct gas payments, repairs, and oil changes based on a percentage of use. You can also track miles and write of your car based on mileage. If you are taking long trips this could be the most beneficial way. Just keep a log of mileage in your car.

Business Gifts

Each year your business can give away gifts to individuals or to other businesses. The individual limit is 25 dollars per a person per a gift. Also your business can give gifts to other businesses with no limit on the value. These gifts can be in the form of a basket during the holidays or even buying an entire business a meal.

Education and Seminars

Your company can deduct the cost of any current education whether or not it has to do with your business. This includes pretty much everything such as books, tapes, and seminars. If you are traveling to a seminar all of your travel expenses can also be written off.

These are a few of the many deductions available to your business. To find out about other deductions such as travel, dry cleaning, and dependant care visit pfbs.com.