Small Business Tax Tips

Posted on April 27th, 2015 | by      

Don’t overlook deductions.

A general rule of thumb is that any expense directly related to or associated with your business is a potential tax savings. “If you think like that, you’ll avoid overlooking deductions,” Gillen said.

One associated expense often overlooked, underreported or miscalculated is an office in the home. The rules are simple: It must be used exclusively and regularly for business. “That means it’s solely used for business and can’t be in a bedroom or kitchen,” Gillen said.

There are two ways to take the deduction. One is a simplified method that allows you to claim $5 per square foot up to 300 square feet. Actual expenses is where you can claim a portion – say 200 square feet of a 2,000-square-foot home – and you can write off 10 percent of mortgage interest, taxes, utilities and other related costs.

Read more at http://www.philly.com/philly/business/20150316_These_tax_tips_could_save_your_small_biz_big.html#FGQPyMPI1aO4jMyw.99

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