As you may know, many business expenses should be taken as a tax deduction.
Here is a quick list:
*courses you purchased
*business credit interest
*meals related to business activity
But make sure you understand that some business expenses are called Capital Expenses and can’t be completely deducted in a single year.
Capital expenses are expenses that are considered as part of the investment in your company such as business start-up costs like registering your name, business assets like computers and improvements. These expenses must be “capitalized” rather than deducted as a straight business expense.
That just means that you deduct a percentage of that cost each year.
As an example, the cost of your new LLC may be $2,000 and you might take a $400 tax deduction on that $2,000 expenses this year and each year for the next 4 years until the total cost has been deducted.
You can see in this example that it pays to read up on all the proper tax codes or hire an accountant that will do this for your business.
P.S. For more great tips like this one.Don’t miss the webinar I will be doing with Thomas Kish on Saturday at 10am pacific 12pm Eastern at: