7 Small Business Tax Deductions That You Don’t Want To Miss

Are you neglecting to deduct business expenses on your tax return?

You could be leaving money on the table. Whether you’re an established entrepreneur or just setting up shop, you can save thousands of dollars in tax deductions. So which expenses qualify? To receive a tax deduction, business expenses must be necessary and typical for the type of business you run.

There are exceptions to the rule. You can’t write off speeding or parking tickets. But don’t let this stop you from saving serious money on your tax return. Place those dollar bills back into your wallet by adding these commonly overlooked business expenses to the list.

1. Costs to Keep Your Business Running

As you maintain your business, you’re bound to purchase office supplies and advertising. But did you know that you can also write off equipment repair, business calls, and office furniture payments?

There are limits though.

  • If your business goes under, you can’t deduct costs for exploring a business opportunity. But you can deduct costs for products, materials, and supplies in your inventory.
  • You also can’t completely deduct costs from starting your business. Instead, you can deduct up to $5,000 the first year and write off any remaining startup costs periodically over the course of 15 years.
  • Every cent you invest into your business is referred to as either a capital expense or a current expense.

Capital expenses are your business asset purchases, long-lasting equipment that will continually improve your business in subsequent years. Because capital expenses normally don’t wear out after the first year, these expenses are depreciated and deducted over a period of time.

Current expenses are charges for equipment or services used every day to maintain a profitable business. They’re normally used up in the first year, so you can deduct the total cost of current expenses on your tax return.

  • Repairs that add value to equipment, prolong the lifespan, or adapt an item to a different use can be deducted on your tax return.
  • Advertising fees to create promotional materials like business cards and print, radio, yellow pages, and banner advertisements are completely deductible.
  • If you regularly use the phone to call clients or customers, you can deduct charges relevant to your business.

Be forewarned though: if you try to mask personal purchases by claiming them as business expenses, you might be in deep waters when your tax return triggers an audit.

2. Home Office Fees and Rent

Do you work from home? Deduct a portion of rent, insurance, and utility payments if you have an office that is dedicated to business.

There is one drawback. Your office has to be exclusively for business use.

It’s fine to work in your slippers, but you can’t take a home office deduction if your bed is in the room unless your office is sectioned off. You also can’t let your children play Legos in your workspace. And you most certainly can’t watch TV in your office during downtime.If you do, your office won’t be considered exclusively for business.

You also have to use your office consistently to take advantage of the home office deduction. Feel free to call clients, bill customers, take notes, set appointments, meet with clients, order materials, or write reports in your office. But an office that you only use occasionally doesn’t count.

There are exceptions to the rule. If you run a daycare business or you have a room set up for inventory storage, you can still take the deduction even if the room isn’t used 100% for business.

3. Auto Payments

Did you know that you can deduct the cost of gas consumed while driving to and from client meetings?

Whether you own a real estate business, regularly meet with clients, or rent an office away from home, you can save hundreds of dollars on your tax return.

Use your car for business? You can calculate your deduction one of two ways.

  • Deduct based on the standard mileage rate. If your regular business routine requires that you constantly be on the road, you might be able to save more by deducting a certain amount of money after every mile driven, along with toll and parking costs.
  • Deduct actual expenses. If you occasionally meet with clients or your car consumes more gas than average, you can save a great deal more by deducting a portion of expenses for gas, replacement tires, oil changes, insurance, and car registration.

Always keep an organized record of your car usage, and filing your federal and state income taxes will be as simple as doing a few math calculations.

4. Travel and Entertainment Costs

Do you remember that vacation deal you purchased right before your last business trip?

Write off a portion of your plane fare, depending on how you spent your vacation. Part of your transportation costs is qualified as a deduction if over half of your trip was spent on business. The more time you devoted to your business, the higher the deduction.

Needed to pay for clean clothes while you were away? You can deduct laundry and dry cleaning expenses. You can also deduct commuting costs, lodging fees, tips, fax charges, and costs to ship product samples and display materials.

Moreover, if you’ve ever hosted an event for your business at your office, restaurant, or another location, you can deduct entertainment expenses that helped promote business growth or well-being. Keep in mind that only 50% of meals are deductible.

You can even deduct moving costs if you had to relocate your home because of work. If the move wasn’t directly related to your business though, you can’t claim the deduction.

5. Educational Materials and Professional Fees

Have you purchased a book to learn a skill that would directly impact your business? How about that copywriter you hired to craft a sales page that would later transform a product launch into a massive success?

Business-related books, legal fees, and professional services are all fully deductible on your tax return.

You’re not just limited to books and independent contractors though. If you pay an accountant or purchase a tax program every year, you can deduct tax preparation fees.

Own a business with hired staff? You can reduce taxes by deducting salaries, bonuses, and fringe benefits like health insurance and sick leave.

6. Bad Debts

If you sell your own services, you’ve likely stumbled across an occasional troublesome client. Your client might refuse to pay you for work performed, lowering your profit margin for the month. Maybe you’ve even loaned money to customers or suppliers, but the loan was never paid off.

Luckily, this income loss is completely deductible as long as you provide written documentation stating the amount of the debt, interest rate if applicable, and the steps you took to collect the debt. If you can prove that you’ve made several attempts to receive payment and the debt is impossible to collect, you can write it off on your tax return.

Save your hard-earned cash at the end of the year by keeping a detailed record of business-related purchases and activities. You can use financial software to help with this, but simply opening an excel spreadsheet to jot down expenses as they pop up works as well.

Separate payments into clearly marked categories and you’ll save both time and money the next time you file taxes.

7. The Hummer Deduction

Has your business purchased a car or a large machine recently? This can be converted into a large tax benefit using “The Hummer Deduction”, also know as section 179 of the tax code. Learn More

Disclaimer: You should consult with your tax advisor before following any of the ideas in this article. This article is a starting point for discussion with your advisor. I am not a tax professional and while I believe that what is contained in this article is generally true, it may not be true in your particular case.

Forex Education Tips – 5 Steps to Successful Forex Trading

Close to 95% of all Forex traders will lose money. We’re not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That’s a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!Like the TV show says … “How’d they do that, anyway?”That’s the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.The Process of Trading is:Strategy > Money Management > Self-MasteryHere are some simple Forex Education tips to help you master the process of forex trading:Success Tip #1 – You’ve Got To Have a PlanYou must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.

(adsbygoogle = window.adsbygoogle || []).push({});
Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.Success Tip #2 – Focus on Your Personal PsychologyKnowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!Success Tip #3 – Be Realistic About Your ExpectationsThis is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.Success Tip #4 – Exercise PatienceRome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.Keep the focus on the process and with time your results will blow your mind.Success Tip #5 – Money Management Is Top PriorityI would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.

(adsbygoogle = window.adsbygoogle || []).push({});
Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% – 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.

The Energy Healing Power of Natural Medicine

Natural medicine is a system that uses a variety of therapeutic or preventive health care practices such as homeopathy, naturopathy, chiropractic, and herbal medicine. Alternative medicine is also known as traditional, naturopathic, natural or holistic medicine. Proponents of alternative medicine are not refuting the validity of discoveries in and the practical uses of conventional medicine, but are merely trying to put some things into perspective. Due to the widespread interest in natural medicine along with the disappointment and disenchantment with Western medicine, many people, especially in the United States and Europe, where conventional medicine has taken a dominant foothold, are seeking the advice and treatment from naturopathic physicians. These practitioners include herbalists, acupuncturists, naturopaths, chiropractors, and others, who advocate preventative health measures as well as recommend wholesome foods and nutritional supplements for their patients and clients. Considering the growing popularity and effectiveness of alternative health treatments and products, certified and licensed professional practitioners of such medical practices should be given their rightful and respectful place in medical society. Natural medicine has been proven not only to be safe, but more effective than Western medicine in treating many chronic illnesses such as diabetes, hypertension, asthma and many other diseases as well

(adsbygoogle = window.adsbygoogle || []).push({});
The history of Natural Medicine and its roots can be traced back thousands of years to ancient cultures such as India and China. Ayurvedic (E. Indian) and Chinese medicine, along with their diagnostic and herbal systems, are still used in these countries extensively, as well as in the United States, especially in Europe, where alternative medicine is well respected. Chinese herbal medicine has a documented history of over 2500 years in China, and is now widely used by practitioners all over the world. It has been legally practiced in the United States. since the mid seventies by licensed acupuncturists. Homeopathy is also a well-known form of alternative medicine discovered in the 18th century by German physician Samuel Hahnemann, but was practically stamped out in the U.S. in the late nineteenth century by the American Medical Association. In 1938, though, the U.S. Food, Drug, and Cosmetic Act finally recognized homeopathic pharmacopoeia as the legal equivalent of allopathic medicine.Another more contemporary and popular form of herbal medicine, called Western herbalism, can be traced back about two hundred years in America. Samuel Thomson, born in 1769, is considered the father of Western herbalism. He discovered over sixty different medically effective native plants by clinical testing, and on the basis of these findings, devised a theory of disease and botanical drug action. Randy Kidu, D.V.M., Ph.D., writes in his articled entitled A Brief History of Alternative Medicine: “The history of herbal medicine is interesting because herbs have been a part of our diet and pharmacy since man began roaming the earth. Coprophytic evidence (seeds and other plant part(found in preserved fecal pellets) points to herbal use by cavemen. Early herbalists practiced their trade since before recorded history in all parts of the world including China, Egypt, Greece, Rome, Africa, England, the Americas, and Europe. Many herbs are also mentioned in the Bible. Today, based on sheer numbers of folks who use one form of herbal medicine or another, it remains the most-used medicine worldwide.”Twenty-five hundred years after the advent of allopathic medicine, modern medicine is still grappling with the idea that herbal medicine could be an effective treatment, and not just quackery, although thousands of years of recorded history has proved its efficacy. A new model of understanding in medicine needs to be incorporated into the existing allopathic model. Because of the growing popularity and effectiveness of natural medicine, practitioners may eventually be given their deserved place in medical society. The incorporation of natural medical practices into the existing model of conventional Western medicine, including the training of new medical doctors, is now called Complimentary Medicine. In order to solve our health problems, this modern paradigm for treatment in medicine must be promoted. This can only truly emerge when bias, self-interest, greed and discrimination is discarded and diverse medical knowledge is promoted and shared, not only between university trained scientists and medical doctors, but among Alternative Medicine practitioners, philosophers, metaphysicians, and other intelligentsia of society as well.

Skip The Lines – Bring The Amusement Park Right To Your Own Back Yard

There’s no shortage of things to do in Atlanta. From professional sports to amusement parks, there’s something for everyone. In fact, Atlanta is proud to house some of the nations largest amusement attractions, including the ever popular Six Flags Over Georgia. Children (and adults) love the thrill and adrenaline rush of the large roller coasters. However, one thing most people don’t like about amusement parks is the long lines. By the time it’s all said and done, you can spend several hundred dollars for your family to have an afternoon of fun, and only get a few rides in. This year, instead of spending the day waiting in long lines for short rides, why not bring the fun right to your back yard? With today’s technology, you can literally do just that! One of the advantages of living in a large city like Atlanta is that we have large rental companies that can make your special event feel just like a trip to Six Flags… complete with a train and an ice cream cart!

(adsbygoogle = window.adsbygoogle || []).push({});
If you’re trying to replicate the amusement park feel, there are definitely specific items that you’ll want to be on the lookout for. As mentioned previously, ice cream carts and trackless trains help make the special event feel more like a day at Six Flags.In order to make your next special event more special, try some of the following tips:

Head online to do some research on the party rental company that has the selection your looking for. If you want an ice cream cart to complete your theme park adventure, look around until you find what you’re looking for.

Don’t settle for the first website you see. There are literally hundreds of inflatable party rental companies in Atlanta. Keep looking for a website that offers a wide variety of rental items that you’re looking for.

It’s better to rent everything from one company. Renting in bulk can help you save money. Larger companies will offer discounts for larger purchases of multiple units and rental items.

(adsbygoogle = window.adsbygoogle || []).push({});
Having a day of amusement park fun is cheaper and easier than ever before. By bringing the amusement park to your front door by using a party rental industry, you can include more people at a lower price. So next time you’re planning a special day, instead of spending tons of money for just a few people and braving the long lines of amusement parks, invite the whole neighborhood and bring the amusement park right to your own back yard!