Tax Deductions for Your Small Business
The government recognizes that business owners must spend money to make money and helps out by offering a wide array of business-related tax deductions not available to others. Small business owners are allowed to deduct most of their costs of doing business from their gross income. Businesses then pay taxes on their net business profit instead of their total business income. The lower your net profit is at the end of the year, the less money you will have to pay in taxes to the IRS. So, how tax savvy you are as a small business owner will make a big difference in the amount of money that you owe the IRS each year. Don't lose out on tax savings by not taking advantage of tax deductions that are available to you.
Because of these deductions, small business owners live in a different tax world from wage earners and others. But it won't do you any good as a business owner to have all these tax breaks unless you know about them and how to take advantage of them. Many small business owners miss out on many valuable deductions each year because they don't take the time to learn about tax deductions and the records they need to keep to back up deductions they take.