Ask Questions 
Share Tips 
List Your Business 
Coffee Talk with Experts 
Biz Planning | Sample Plans 
Idea 
Name 
$ 
Do It! 
Promotional Merchandise
Managing | Operations
Work @ Home 
Yoga @ Your Desk 
|
|
Answer from our Guest Expert Peter Soh of AdviseInc.com - page 2
Sole Proprietorship Write-offs
Many small businesses are ran as sole props. Owners take responsibility for the business's debts and liabilities, yet they enjoy all the profits as well. Some general tax write-offs for sole proprietorships would include:
If you run your business from home, learn more about the Office-in-the-Home Deduction compliments of Idea Cafe.
Equipment depreciation -- Every piece of equipment you use in the operation of your business can be depreciated and provide you with valid tax write-offs.
Greeting cards -- Here's alittle known tax write-off. When your small business sends out greeting cards for various business reasons, their costs are deductible.
Mileage -- Don't forget every mile you drive on behalf of your business is deductible. Keep a detailed track records of these miles for each tax year, and present them to your accoutant for write-off purposes.
Partnership & LLC Write-offs
General and limited partnerships and LLCs are considered "flow-through" entities, which means the owners are taxed on income, or they can deduct losses on the company's undistributed earnings each year. These distributions are typically nontaxable, and this single level of taxation is very attractive for startup companies. The LLC has been very popular because it offers all of its owners limited liability, single taxation, and flexibility for tax benefits; whereas the partnerships cannot offer limited liability for all of its owners. Some write-offs for partnerships and LLCs you may not have considered include:
Big Money Investor Allocation LLCs and partnerships allow some flexibility in the tax treatment for each owner. For instance, a big money investor in the entity may want to deduct tax losses generated by the entity. If all parties agree, losses from a company can be allocated to the big money investor, and if there's income, those amounts can be allocated evenly to the other partners or shareholders.
|
|
Small Business Tax Center • Idea Cafe Home • Sign Up • Biz Grant Center • CyberSchmooz •Coffee Talk with Experts • People in Biz Profiles • Starting Your Biz • Biz Planning • Running Your Biz • FREE Trade Publications • Marketing • Financing Your Biz • Human Resources • Legal & Biz Forms • Managing Your Biz • eCommerce • You and Your Biz • Gen X • Work@Home • The Fridge • De-Stress • Send an Award • Send an eGreeting • Yoga @ Your Desk • Web Guide • Idea Cafe in the News • About Idea Cafe • Advertise on Idea Cafe • Contact Us • Privacy Policy • Site Map • Small Biz News
Copyright 1995-2024, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc. DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages. TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.
|
|
|
|