Common Business Expenses That Are Tax Deductible

A tax deductible expense is any necessary, reasonable and ordinary expense that is associated with earning business income. As you can imagine, this definition is highly volatile. It is really important that you know about all the business expenses that are tax deductible. This would help you to save a lot of money on taxes. In this post we outline common business expenses that are tax deductible.

Unfortunately, most business managers do not know what expenses can be considered as being tax deductible. That is why we will go through those that many do not know much about.

Administrative And General Expenses

Basically all of the expenses that are necessary for business operations are tax deductible. This includes what you would expect: salaries, supplies, equipment, office rent, utility costs, accounting services, business publications subscriptions and professional dues. Such expenses are usually covered but there are so many others that are associated with administrative or general expenditures. For instance, you can actually deduct content writing tools and investments done in setting up a business office.

Make sure that you talk with your tax accountant. Mention the different expenses that will appear and see if they are going to be deductible or not. You will quickly figure out that even miscellaneous expenses like repairs, charitable contributions or education expenses can be deducted.

Keep in mind that home office deductions can be quite substantial. You gain many different advantages when you run an office from your home so do consider the opportunity as one that can help you to save a lot of money.

Automobile Expenses

When doing business, you can easily have situations in which you drive a car. The business related mileage can be tax deductible, unless the automobile was used to commute from and to work. In the event that the travel was made with a business purpose that can be proven, tax deductions are available. Besides mileage, you can also deduct part of the expenses associated with car operating costs.

Travel And Entertainment Deductions

Reasonable entertainment and travel costs can be tax deductible when:

  • They are directly connected with business
  • They are associated with business

Due to the personal element that appears, only around 50% of the entertainment expenses and meals will be deductible.

Depreciation Deductions

Based on Internal Revenue Code, the small business owner can write off up to $18,000 of purchased equipment during one year period. It is a tax break that you do want to take advantage of as soon as possible, especially in the event that you often find yourself buying office related equipment.

Employee Benefit Deductions

These are highly valuable for business operations. Offering employees fringe benefits is actually tax deductible, which is many that do not know about. Many of such benefits are not seen as employee income. Tax breaks are thus available. The only problem is that there are many different deductions that appear and disappear. Tax laws change constantly so you need to be ahead of the curve.

We should also add that retirement plans chosen can also lead towards various tax advantages. Employer contributions are normally tax deductible and such money can be tax-deferred till retirement age is reached.

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Handling your Payroll – Save Time and Money

As payroll Taxes account for more Revenue to the Exchequer than VAT and Corporation Tax combined we understand why an accurate P35 submission is imperative. Fear not Tailored Payroll can help you simplify the year end process. As well as processing payroll for numerous companies we also offer a one to one consultation service, where we will go onsite and guide you through 2014 Year End. Even if Tailored Payroll did not process your payroll all year this service is still available to you.

Our team is IPASS qualified to Diploma level. We pride ourselves on our good relationship with our clients, our attention to detail and great teamwork. Tailored Payroll are big enough to guarantee you peace of mind but we are small enough to care, giving you that personal touch service and support from the whole team that our clients really appreciate and rely on. We pride ourselves on delivering a quality product and service, on time and at a complete price.

Tailored payroll service

We offer a tailored payroll service for our clients to meet their specific needs while ensuring compliance with Revenue, Department Of Social Protection and NERA.

As your payroll bureau we become an integral part of your business by molding your payroll to suit you and dedicating our efforts on your payroll so you can dedicate your time to your core business.

Our flexible service includes:

  • PAYE, PRSI and USC Calculations
  • Registration of Employer with Revenue
  • All employer Revenue submissions to include: P30’s, P45’s, P35, P60’s and registration of new employees
  • We provide email Payslips and P60s to employees
  • Creation of Bank file for payment to employees
  • No hidden costs

For more information about this business visit their website or email to Tailored Payroll is part of Use SBC as a channel initiative. If you want your business to be featured, click here.

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