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Tax deductions for business expenses arent just for large corporations. As an Internet marketer or online entrepreneur it is important to know what you can and cannot deduct to save money on your taxes.
People new to business taxes tend to fall into one of two groups. The first group are those people who simply dont believe they can be eligible for tax deductions. The second group are those who believe anything they touch while conducting business can be written off as a business expense. Both ideas will cost you money; the former in lost tax money, the latter in IRS fines.
In general, the kinds of things that can be deducted deal with the ongoing operation of your business: rental costs, utility expenses, and travel expenses. Not, for example, a new car. Items that add permanent value to your business (i.e. assets) are capitalized, not deducted. Interests on mortgages or repair of computer equipment (which maintain rather than appreciate your businesses value) are deductible expenses.
If you use your personal vehicle for your small business you may be able to deduct repair expenses. If you have a room in your home used strictly as a home office you can deduct certain expenses. There are numerous ways to plug the money leaks streaming out of your business.
Luckily, the IRS has listed in detail what you can deduct in its free publication entitled, shockingly, Business Expenses. (http://www.irs.gov/pub/irs-pdf/p535.pdf) At fifty-eight pages it is not a casual read, but it has a good index you can use to find the parts relevant to your business.
The IRS Small Business site (http://www.irs.gov/businesses/small/index.html) contains a lot of useful information and, as government websites go, is well put together and easy to navigate. From this site you can access practically every form needed in your relations with the IRS and even find out how to electronically file for free. Our tax system isnt simple, but at least they publish the rules.
Avery Thompson has been involved with internet marketing since 2007. Avery has worked with some of the top developers and marketers world wide. Avery brings a vast array of information and knowledge to his blog, in hopes of helping as many as he can become successful online marketers