Claiming Your Deductions

It's one thing to be entitled to a business deduction. It's another thing to claim it properly. Without this second step, all the business deductions in the world won't do you any good. There are strict rules for qualifying for deductions and documenting your right to claim a deduction. Small businesses get a disproportionate share of the IRS's attention in the form of audits. Make sure you know the rules before you claim a deduction and that you follow those rules carefully. And hold onto the documentation that is required to back up the deductions you take. Otherwise, you could owe back taxes and penalties to the IRS.